April 18, 2005
La Belle, Florida
Alico, Inc. Reports Second Quarter Results
LaBelle, Fla., April 18, 2005-- Alico, Inc., (NASDAQ: ALCO) one of the Souths best known agribusiness companies operating in Central and Southwest Florida, and with approximately 141,000 acres in real estate holdings, announced net earnings for the six months ended February 28, 2005, were $954 thousand or $0.13 per share. This compares to $12.8 million or $1.79 per share, during the six-month period ended February 29, 2004.
John R. Alexander, Chairman and Chief Executive Officer noted," The decrease in net income was primarily due to a decrease in earnings from real estate sales, compared to the same period a year ago and increased general and administrative expenses primarily related to activities of the Special Committee of the Board organized to consider a possible reorganization and an ongoing internal control documentation project required by the Sarbanes Oxley Act.
Operating revenues during the three months ended February 28, 2005 (second quarter of fiscal 2005) totaled $19.4 million, compared to $16.7 million during the same period a year ago. A loss of ($11 thousand), or $0.00 per share was reported for the second quarter of fiscal 2005, compared to a profit of $12.7 million, or $1.77 per share, during the same period a year ago.
Stockholders equity as of February 28, 2005 was $148.0 million, compared to $145.2 million at February 29, 2004.
Mr. Alexander noted that the citrus division reported a profit of $1.2 million for the first six months of fiscal 2005; while during the same period a year ago a loss of ($394 thousand) was reported. A reduced Florida orange crop, caused by a series of hurricanes, resulted in increased citrus prices when compared to the prior year.
Sugarcane earnings were $402 thousand for the six months ended February 28, 2005, compared to $1.7 million for the six months ended February 29, 2004. Lower prices, increased costs and reduced yields combined to cause the decrease.
Ranch earnings were $708 thousand for the first six months of fiscal 2005, compared to $813 thousand for the first six months of fiscal 2004. The decrease was due to returns on cattle sold.
Alico, Inc., an agribusiness company operating in Central and Southwest Florida, owns approximately 141,000 acres of land located in Collier, Hendry, Lee and Polk Counties. The company is involved in various operations and activities including citrus fruit production, cattle ranching, sugarcane, sod production, and forestry. The Company also leases land for farming, cattle grazing, recreation and oil exploration, and is increasingly involved in exploring real estate development in and beyond its holdings.
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. 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.
For further information contact: John R. Alexander
La Belle, Florida