This year’s event will consist of 1-on-1 / small group meetings, analyst-selected fireside chats, thematic and industry panels, by executive management from approximately 500 private and public companies in a variety of growth sectors including: Consumer, Technology & Media, Sustainability & Industrial Growth, AgTech, Energy, Metals & Mining, Healthcare, Services and Insurance. To learn more and submit a registration request, visit https://ibn.fm/Roth2024Registration.
ABOUT ALICO
Alico has over 125 years of experience as an agri-business, and currently manages 49,000 acres of citrus groves in 7 counties across 31 locations in Florida. Alico believes it is the largest citrus grower in the U.S. and a primary supplier to Tropicana Brands Group, a leading orange juice producer.
ABOUT ROTH MKM
ROTH MKM is a relationship-driven investment bank focused on serving growth companies and their investors. Their full-service platform provides capital raising, high impact equity research, macroeconomics, sales and trading, technical insights, derivatives strategies, M&A advisory, and corporate access. Headquartered in Newport Beach, California, ROTH MKM is a privately-held, employee-owned organization and maintains offices throughout the U.S. For more information, please visit www.roth.com
LEARN MORE ABOUT ALICO INC.
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico (Nasdaq: "ALCO") at www.alicoinc.com.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our expectations related to box production and citrus pricing, the potential value of our land holdings, our long-term debt targets, our ESG initiatives, our intentions, beliefs, expectations, strategies, or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business and assets based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; ESG issues, including those related to climate change and sustainability, biodiversity or diversity and inclusion; changes in investor or other stakeholder sentiment or demand; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting ; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and the COVID-19 pandemic; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in. our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023, and in our Quarterly Reports on Form 10-Q, which are available on the SEC’s website at http://www.sec.gov. Past performance is not necessarily indicative of future results. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement in this presentation, whether as a result of new information, future developments, or otherwise.
This presentation also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
INVESTOR RELATIONS CONTACT
Any questions can be emailed to: investorrelations@alicoinc.com
Source: Alico, Inc. ]]>
- The Company reports net income attributable to Alico, Inc. common stockholders of $42.9 million and EBITDA of $63.8 million for the fiscal quarter. After adjusting for certain items, the Company reports Adjusted EBITDA of $(2.3) million for the quarter ended December 31, 2023.
- On December 21, 2023, the Company closed on the sale of 17,229 acres of the Alico Ranch to the State of Florida for $77.6 million in gross proceeds.
- The Company repaid all outstanding borrowings on its working capital line of credit, as well as $19.1 million outstanding on its Met Life Variable-Rate Terms loans, both of which incurred interest in excess of 7.00% per annum.
- The Company had lower than anticipated box production for the Early and Mid-Season Harvest, due to the impacts from Hurricane Ian, which resulted in an inventory write-down of $10.8 million.
-
The Company maintains a strong balance sheet with a working capital ratio of 2.52 to 1.00, and has maintained its debt ratio at 0.19 to 1.00 for the fiscal quarter, as compared to 0.30 to 1.00 for the comparable prior year fiscal quarter.
Results of Operations
For the first fiscal quarter ended December 31, 2023, the Company reported net income attributable to Alico common stockholders of $42.9 million, compared to a net loss attributable to Alico common stockholders of $3.2 million for the first fiscal quarter ended December 31, 2022, driven by the sale of the remaining 17,229 acres of the Alico Ranch on December 21, 2023, for $77.6 million in gross proceeds. For the fiscal quarter ended December 31, 2023, the Company had earnings of $5.64 per diluted common share, compared to a loss of $0.41 per diluted common share for the fiscal quarter ended December 31, 2022.
Total operating expenses were $28.2 million and $14.4 million for the fiscal first quarters ended December 31, 2023 and 2022, respectively. The increase in operating expenses primarily relates to the $10.8 million adjustment to reduce the Company's inventory to its net realizable value, as a result of significantly lower than anticipated box production from our Early and Mid-Season crop, due to the on-going effects of Hurricane Ian; as well as increased harvest and haul costs driven by the Company's increased box production and approximately $1.3 million received in the quarter ended December 31, 2022, which was the last installment of the Florida citrus block grant program for the 2017 storm, Hurricane Irma.
When both periods are adjusted for certain items, including gains on sale of real estate, federal relief proceeds from the 2017 Hurricane Irma, a net realizable value adjustment, and stock-based compensation expense, the Company had Adjusted EBITDA for the fiscal quarters ended December 31, 2023 and 2022 of $(2.3) million and $(3.4) million, respectively.
The Company reported the following financial results:
(in thousands, except for per share amounts and percentages) | ||||||||||
Three Months Ended December 31, | ||||||||||
2023 | 2022 | Change | ||||||||
Net income (loss) attributable to Alico, Inc. common stockholders | $ | 42,945 | $ | (3,150 | ) | NM | ||||
Earnings (loss) per diluted common share | $ | 5.64 | $ | (0.41 | ) | NM | ||||
EBITDA (1) | $ | 63,811 | $ | 865 | NM | |||||
Adjusted EBITDA (1) | $ | (2,312 | ) | $ | (3,441 | ) | 32.8 | % | ||
Net cash used in operating activities | $ | (13,169 | ) | $ | (9,665 | ) | (36.3)% |
(1) “EBITDA” and “Adjusted EBITDA” are non-GAAP financial measures. See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures to their most directly comparable GAAP measures.
NM = Not meaningful
These quarterly financial results also reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's gross profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
Alico Citrus Division Results
Citrus production for the three months ended December 31, 2023 and 2022 is summarized in the following table.
(in thousands, except per box and per pound solids data) | ||||||||||||
Three Months Ended December 31, | Change | |||||||||||
2023 | 2022 | Unit | % | |||||||||
Boxes Harvested: | ||||||||||||
Early and Mid-Season | 1,047 | 805 | 242 | 30.1 | % | |||||||
Total Processed | 1,047 | 805 | 242 | 30.1 | % | |||||||
Fresh Fruit | 31 | 36 | (5 | ) | (13.9)% | |||||||
Total | 1,078 | 841 | 237 | 28.2 | % | |||||||
Pound Solids Produced: | ||||||||||||
Early and Mid-Season | 4,666 | 3,737 | 929 | 24.9 | % | |||||||
Total | 4,666 | 3,737 | 929 | 24.9 | % | |||||||
Pound Solids per Box: | ||||||||||||
Early and Mid-Season | 4.46 | 4.64 | (0.18 | ) | (4.0)% | |||||||
Price per Pound Solids: | ||||||||||||
Early and Mid-Season | $ | 2.66 | $ | 2.57 | $ | 0.09 | 3.4 | % |
The increase in revenue for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, was primarily due to a 24.9% increase in pound solids, driven by a 30.1% increase in processed box production, as we began to recover from the effects of Hurricane Ian. Our fruit production for the three months ended December 31, 2022 was adversely impacted by the fruit drop caused as a result of the impact of Hurricane Ian in September 2022. Although Hurricane Ian initially impacted the fiscal year 2023 harvest, we expect it may take another season, or more, for the groves to recover to pre-hurricane production levels.
In addition, there was an increase in the price per pound solid of 3.4%, for the three months ended December 31, 2023, compared to the same period in the prior year, as a result of more favorable pricing in one of our contracts with Tropicana.
Land Management and Other Operations Division Results
Land Management and Other Operations includes lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties, and other miscellaneous income.
The increase in revenues from Land Management and Other Operations for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, was primarily due to the signing of new farming leases.
The increase in operating expenses from Land Management and Other Operations for the three months ended December 31, 2023, as compared to the three months ended December 31, 2022, is primarily due to an increase in property taxes.
Management Comment
John Kiernan, President and Chief Executive Officer, commented:
As previously announced, on September 18, 2023, Alico signed a contract with the State of Florida to sell the remaining 17,229 acres of the Alico Ranch, and on December 21, 2023, we closed on the sale for $77.6 million in gross proceeds. A portion of the proceeds from this sale were used to repay the outstanding balance on our working capital line of credit and $19.1 million of Met Life Variable-Rate Term Loans, plus accrued interest. The remainder we retained in cash.
Results from our Early and Mid-Season harvest this season were disappointing, resulting in an inventory write-down of $10.8 million in the first quarter of fiscal year 2024. We believe that the Early and Mid-Season box production was affected by the continued impacts of Hurricane Ian. We are cautiously optimistic that our Valencia crop, which we will begin harvesting soon, will show a stronger rate of recovery. That harvest is expected to begin in another week or so.
In January 2024, the Company received funding from the Citrus Research and Field Trial Foundation to support our use of Oxytetracycline to combat the effect of “greening” in the citrus trees. Last year beginning in January 2023 over 35% of our producing trees were treated with an OTC trunk injection, with the expectation that it would improve fruit quality and decrease the rate of fruit drop. We expect that the full extent of the benefits of these prior year OTC treatments will not be measurable until the full 2023-24 harvest is completed.
Also last month, we published our 2023 Annual Sustainability Report, highlighting our approach to sustainability and progress with our environmental, social, and governance priorities.
We believe that our balance sheet remains one of our greatest strengths as we continue to operate in a challenging citrus industry. Because of the sale of the remaining acreage of Alico Ranch we have been able to reduce our total debt by $44 million and our net debt by almost $62 million, representing a decrease of 34% in our total debt and a decrease of 48% in our net debt, in each case, from September 30, 2023 to December 31, 2023. Even more importantly, we have the full $95 million available of undrawn credit, which is comprised of approximately $70 million on our working capital line of credit which matures in November 2025 as well as $25 million of undrawn credit on the revolving line of credit, which matures in November 2029. We believe that these credit facilities provide Alico with ample liquidity while the Company continues to recover from the impact of recent weather events.
Other Corporate Financial Information
General and administrative expense for the three months ended December 31, 2023 was $3.3 million, compared to $2.5 million for the three months ended December 31, 2022. The increase was primarily due to an increase in salaries and wages of $0.6 million and consulting fees principally related to real estate entitlement activities of $0.3 million.
Other income (expense), net for the three months ended December 31, 2023 and 2022, was $75.5 million and $2.0 million, respectively. The increase is primarily due to the sale of 17,229 acres of the Alico Ranch to the State of Florida.
Dividend
On January 12, 2024, the Company paid a first quarter cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of December 29, 2023.
Balance Sheet and Liquidity
The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:
- The Company’s working capital was $43.3 million at December 31, 2023, representing a 2.52 to 1:00 ratio.
- The Company maintains a solid debt ratio. At December 31, 2023 and 2022, the ratios were 0.19 to 1.00 and 0.30 to 1.00, respectively.
- Total debt was $84.7 million and net debt was $66.1 million at December 31, 2023, compared to $128.7 million and $127.6 million at September 30, 2023.
- Available borrowings under the Company’s lines of credit were $95 million at December 31, 2023.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding our expectations regarding market prices and the results of our 2023-24 harvest, the impact of Hurricane Ian on our results, expectations regarding our Valencia crop, the impact of the OTC injections, expectations regarding our liquidity, business strategy, plans and objectives of management for future operations or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; ESG issues, including those related to climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting ; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and the COVID-19 pandemic; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023, and in our Quarterly Reports on Form 10-Q, to be filed with the SEC. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Brad Heine
Chief Financial Officer
(239) 226-2000
bheine@alicoinc.com
ALICO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, 2023 |
September 30, 2023 |
||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 18,632 | $ | 1,062 | |||
Accounts receivable, net | 7,886 | 712 | |||||
Inventories | 41,804 | 52,481 | |||||
Income tax receivable | — | 1,200 | |||||
Assets held for sale | 69 | 1,632 | |||||
Prepaid expenses and other current assets | 3,426 | 1,718 | |||||
Total current assets | 71,817 | 58,805 | |||||
Restricted cash | 2,630 | 2,630 | |||||
Property and equipment, net | 361,603 | 361,849 | |||||
Goodwill | 2,246 | 2,246 | |||||
Other non-current assets | 2,913 | 2,823 | |||||
Total assets | $ | 441,209 | $ | 428,353 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 7,041 | $ | 6,311 | |||
Accrued liabilities | 3,633 | 5,363 | |||||
Current portion of long-term debt | 1,410 | 2,566 | |||||
Income tax payable | 15,552 | — | |||||
Other current liabilities | 904 | 825 | |||||
Total current liabilities | 28,540 | 15,065 | |||||
Long-term debt, net | 83,299 | 101,410 | |||||
Lines of credit | — | 24,722 | |||||
Deferred income tax liabilities, net | 36,410 | 36,410 | |||||
Other liabilities | 334 | 369 | |||||
Total liabilities | 148,583 | 177,976 | |||||
Stockholders' equity: | |||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | |||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,616,081 and 7,610,551 shares outstanding at December 31, 2023 and September 30, 2023, respectively | 8,416 | 8,416 | |||||
Additional paid in capital | 20,064 | 20,045 | |||||
Treasury stock, at cost, 800,064 and 806,341 shares held at December 31, 2023 and September 30, 2023, respectively | (27,099 | ) | (27,274 | ) | |||
Retained earnings | 286,368 | 243,804 | |||||
Total Alico stockholders' equity | 287,749 | 244,991 | |||||
Noncontrolling interest | 4,877 | 5,386 | |||||
Total stockholders' equity | 292,626 | 250,377 | |||||
Total liabilities and stockholders' equity | $ | 441,209 | $ | 428,353 | |||
ALICO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended December 31, |
|||||||
2023 | 2022 | ||||||
Operating revenues: | |||||||
Alico Citrus | $ | 13,592 | $ | 10,268 | |||
Land Management and Other Operations | 393 | 320 | |||||
Total operating revenues | 13,985 | 10,588 | |||||
Operating expenses: | |||||||
Alico Citrus | 28,107 | 14,295 | |||||
Land Management and Other Operations | 133 | 94 | |||||
Total operating expenses | 28,240 | 14,389 | |||||
Gross profit | (14,255 | ) | (3,801 | ) | |||
General and administrative expenses | 3,272 | 2,509 | |||||
Loss from operations | (17,527 | ) | (6,310 | ) | |||
Other income (expense), net: | |||||||
Interest income | 95 | — | |||||
Interest expense | (1,605 | ) | (1,148 | ) | |||
Gain on sale of real estate, property and equipment and assets held for sale | 77,025 | 3,189 | |||||
Total other income (expense), net | 75,515 | 2,041 | |||||
Income (loss) before income taxes | 57,988 | (4,269 | ) | ||||
Income tax provision (benefit) | 15,552 | (1,083 | ) | ||||
Net income (loss) | 42,436 | (3,186 | ) | ||||
Net loss attributable to noncontrolling interests | 509 | 36 | |||||
Net income (loss) attributable to Alico, Inc. common stockholders | $ | 42,945 | $ | (3,150 | ) | ||
Per share information attributable to Alico, Inc. common stockholders: | |||||||
Earnings per common share: | |||||||
Basic | $ | 5.64 | $ | (0.41 | ) | ||
Diluted | $ | 5.64 | $ | (0.41 | ) | ||
Weighted-average number of common shares outstanding: | |||||||
Basic | 7,616 | 7,593 | |||||
Diluted | 7,616 | 7,593 | |||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.05 | |||
ALICO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended December 31, |
|||||||
2023 | 2022 | ||||||
Net cash used in operating activities: | |||||||
Net income (loss) | $ | 42,436 | $ | (3,186 | ) | ||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation, depletion and amortization | 3,804 | 3,950 | |||||
Amortization of debt issue costs | 120 | 36 | |||||
Gain on sale of real estate, property and equipment and assets held for sale | (77,025 | ) | (3,189 | ) | |||
Loss on disposal of long-lived assets | 225 | 1,915 | |||||
Inventory net realizable value adjustment | 10,846 | — | |||||
Stock-based compensation expense | 194 | 305 | |||||
Other | 36 | 8 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (7,174 | ) | (4,045 | ) | |||
Inventories | (169 | ) | (1,316 | ) | |||
Prepaid expenses | (1,708 | ) | (122 | ) | |||
Income tax receivable | 1,200 | (1,083 | ) | ||||
Other assets | 2 | 108 | |||||
Accounts payable and accrued liabilities | (1,320 | ) | (2,822 | ) | |||
Income taxes payable | 15,552 | — | |||||
Other liabilities | (188 | ) | (224 | ) | |||
Net cash used in operating activities | (13,169 | ) | (9,665 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (3,490 | ) | (3,453 | ) | |||
Acquisition of citrus groves | — | (29 | ) | ||||
Net proceeds from sale of real estate, property and equipment and assets held for sale | 79,090 | 3,287 | |||||
Change in deposits on purchase of citrus trees | (375 | ) | (301 | ) | |||
Net cash provided by (used in) investing activities | 75,225 | (496 | ) | ||||
Cash flows from financing activities: | |||||||
Repayments on revolving lines of credit | (44,032 | ) | (8,902 | ) | |||
Borrowings on revolving lines of credit | 19,310 | 23,019 | |||||
Principal payments on term loans | (19,383 | ) | (759 | ) | |||
Dividends paid | (381 | ) | (3,793 | ) | |||
Net cash (used in) provided by financing activities | (44,486 | ) | 9,565 | ||||
Net increase (decrease) in cash and restricted cash | 17,570 | (596 | ) | ||||
Cash and restricted cash at beginning of period | 3,692 | 865 | |||||
Cash and restricted cash at end of the period | $ | 21,262 | $ | 269 | |||
Non-cash investing activities: | |||||||
Assets received in exchange for services | $ | 298 | $ | — | |||
Trees delivered in exchange for prior services | $ | 176 | $ | — | |||
Non-GAAP Financial Measures
In addition to the GAAP financial measures, Alico utilizes the EBITDA, Adjusted EBITDA, and Net Debt which are non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA, and Net Debt are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Net Debt is defined as Current portion of long-term debt, Long-term debt, net and Lines of credit, less cash.
EBITDA and Adjusted EBITDA
(in thousands) | ||||||||
Three Months Ended December 31, |
||||||||
2023 | 2022 | |||||||
Net income (loss) attributable to Alico, Inc. common stockholders | $ | 42,945 | $ | (3,150 | ) | |||
Interest expense, net | 1,510 | 1,148 | ||||||
Income tax provision (benefit) | 15,552 | (1,083 | ) | |||||
Depreciation, depletion, and amortization | 3,804 | 3,950 | ||||||
EBITDA | 63,811 | 865 | ||||||
Non-GAAP Adjustments: | ||||||||
Inventory net realizable value adjustment | 10,846 | — | ||||||
Employee stock compensation expense (1) | 56 | 149 | ||||||
Federal relief - Hurricane Irma | — | (1,266 | ) | |||||
Gain on sale of real estate, property and equipment and assets held for sale | (77,025 | ) | (3,189 | ) | ||||
Adjusted EBITDA | $ | (2,312 | ) | $ | (3,441 | ) | ||
(1) Includes stock compensation expense for current executives, senior management and other employees. |
Net Debt
(in thousands) | ||||||||
December 31, 2023 |
September 30, 2023 |
|||||||
Current portion of long-term debt | $ | 1,410 | $ | 2,566 | ||||
Long-term debt, net | 83,299 | 101,410 | ||||||
Lines of credit | — | 24,722 | ||||||
Total Debt | 84,709 | 128,698 | ||||||
Less: Cash | (18,632 | ) | (1,062 | ) | ||||
Net Debt | $ | 66,077 | $ | 127,636 |
Source: Alico, Inc. ]]>
FORT MYERS, Fla., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announced that the Company will release financial results for the first quarter ended December 31, 2023, on Wednesday, February 7, after the market close.
The Company will host a conference call to discuss its financial results on Thursday, February 8, 2024, at 8:30 am Eastern Time. Interested parties may join the conference call by dialing 1-888-886-7786 in the United States and 1-416-764-8658 from outside of the United States. The participant identification to join the conference call is 37132138.
A telephone replay will be available on February 8, 2024, approximately three hours after the call concludes, and will be available through February 22, 2024. Listeners in the United States may dial 1-844-512-2921 and international listeners may dial 1-412-317-6671. The passcode for the playback is 37132138.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Brad Heine
Chief Financial Officer
(239) 226-2000
bheine@alicoinc.com
Source: Alico, Inc. ]]>
The presentation will begin at 8:15AM EST on January 17th and can be accessed live here: https://sidoti.zoom.us/webinar/register/WN_0cggnfidRDSKMh74VUwgiQ
Alico will also host virtual one-on-ones with investors on Wednesday the 17th and Thursday the 18th, 2024. To register for the presentation or one-on-ones, visit www.sidoti.com/events. Registration is free and you don't need to be a Sidoti client.
ABOUT ALICO
Alico has over 125 years of experience as an agri-business, and currently manages 49,000 acres of citrus groves in 7 counties across 31 locations in Florida. Alico believes it is the largest citrus grower in the U.S. and a primary supplier to Tropicana Brands Group, a leading orange juice producer.
ABOUT SIDOTI EVENTS, LLC (“EVENTS”) AND SIDOTI & COMPANY, LLC (“SIDOTI”)
In 2023, Sidoti & Company, LLC, Sidoti & Company, LLC (www.sidoti.com) formed a sister company, Sidoti Events, LLC in order to focus exclusively on its rapidly growing conference business and to more directly serve the needs of presenters and attendees. The relationship allows Events to draw on the 25 years of experience Sidoti has as a premier provider of independent securities research focused specifically on small and microcap companies and the institutions that invest in their securities, with most of its coverage in the $200 million-$5 billion market cap range. Sidoti’s coverage universe comprises approximately 160 equities, of which 40 percent participate in the firm's rapidly growing Company Sponsored Research ("CSR") program. Events is a leading provider of corporate access through the eight investor conferences it hosts each year. By virtue of its direct ties to Sidoti, Events benefits from Sidoti’s small- and microcap-focused nationwide sales force, which has connections with approximately 1,500 institutional relationships in North America. This enables Events to provide multiple forums for meaningful interaction for small and microcap issuers and investors specifically interested in companies in the sector.
LEARN MORE ABOUT ALICO INC.
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico (Nasdaq: "ALCO") at www.alicoinc.com.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our expectations related to box production and citrus pricing, the potential value of our land holdings, our long-term debt targets, our ESG initiatives, our intentions, beliefs, expectations, strategies, or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business and assets based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; ESG issues, including those related to climate change and sustainability, biodiversity or diversity and inclusion; changes in investor or other stakeholder sentiment or demand; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting ; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and the COVID-19 pandemic; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in. our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023, and in our Quarterly Reports on Form 10-Q, which are available on the SEC’s website at http://www.sec.gov. Past performance is not necessarily indicative of future results. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement in this presentation, whether as a result of new information, future developments, or otherwise.
This presentation also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
INVESTOR RELATIONS CONTACT
Any questions can be emailed to: investorrelations@alicoinc.com
Source: Alico, Inc. ]]>
ABOUT ALICO
Alico Inc. has over 125 years of experience in agriculture, and currently manages 49,000 acres of citrus groves in 7 counties across 31 locations. Alico continues to be the top citrus grower in the U.S. and the primary supplier to Tropicana, a leading orange juice brand in the country. Alico is known within the citrus industry for our exceptional caretaking practices, which recently resulted in a new partnership with a large citrus grower. Alico will manage their 3,300 acres of citrus groves, with all expenses reimbursed and a management fee paid per acre for caretaking services.
Alico Inc. will present at the ICR Conference on 8 January at 3:30PM Eastern Standard Time in Palazzo D, with a breakout session immediately following at 4:00PM. An additional breakout session will be held on the morning of 8 January at 9:00AM.
ABOUT ICR
Established in 1998, ICR partners with public and private companies to execute strategic communications and advisory programs and manage complex transactions and corporate events to enhance long-term enterprise value and corporate reputation. For the last two and a half decades, the ICR Conference has brought together more than 2,500 attendees, including the management teams of more than 250 premier public and private growth companies, institutional investors, sell-side research analysts, private equity professionals, sponsoring investment banks and select media each year, to network, discuss industry trends and share their strategies. The three-day event is also filled with insightful panels on important industry topics, dynamic speakers, brand activations, evening receptions and thousands of meetings with key stakeholders.
LEARN MORE ABOUT ALICO INC.
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico (Nasdaq: "ALCO") at www.alicoinc.com.
CAUTIONARY STATEMENT ABOUT FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our expectations related to box production and citrus pricing, the potential value of our land holdings, our long term debt targets, our ESG initiatives, our intentions, beliefs, expectations, strategies, or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business and assets based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; harm to our reputation; tax risks associated a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; ESG issues, including those related to climate change and sustainability, biodiversity or diversity and inclusion; changes in investor or other stakeholder sentiment or demand; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting ; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and the COVID-19 pandemic; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in. our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2023, and in our Quarterly Reports on Form 10-Q, which are available on the SEC’s website at http://www.sec.gov. Past performance is not necessarily indicative of future results. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement in this presentation, whether as a result of new information, future developments, or otherwise.
This presentation also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
INVESTOR RELATIONS CONTACT
Any questions can be emailed to: investorrelations@alicoinc.com
A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/958bddb5-88a1-4e55-9f73-6d33b00a2ca2 and on our website at ir.alicoinc.com.
Source: Alico, Inc. ]]>
- The Company's groves have been recovering from the impact of Hurricane Ian since September 2022.
- The Company reports net income attributable to Alico, Inc. common stockholders of $1.8 million and EBITDA of $23.0 million for the fiscal year ended September 30, 2023. After adjusting for certain non-recurring items, the Company reports adjusted net loss attributable to Alico, Inc. common stockholders of $(24.5) million and Adjusted EBITDA $(16.1) million for the year ended September 30, 2023.
- Land sales continued during the 2023 fiscal year, with the Company selling approximately 2,255 acres for approximately $12.0 million.
- The Company had approximately $70.0 million of undrawn credit available under its two lines of credit as of September 30, 2023.
- The Company maintains a strong balance sheet with a working capital ratio of 3.90 to 1.00, and has maintained its debt ratio at 0.30 to 1.00 for the 2023 fiscal year, as compared to 0.27 to 1.00 for the 2022 fiscal year.
Results of Operations
For the fiscal year ended September 30, 2023, the Company reported net income attributable to Alico common stockholders of $1.8 million, compared to net income attributable to Alico common stockholders of $12.5 million for the fiscal year ended September 30, 2022, relating to cost increases in fertilizer, herbicide, labor, and fuel used in maintaining its groves. These cost increases, combined with decreased revenue because of lower box production for both the Early and Mid-Season and the Valencia harvest, resulted in a higher cost of sales per box as compared to the same period in the prior year. For the fiscal year ended September 30, 2023, the Company had earnings of $0.24 per diluted common share, compared to earnings of $1.65 per diluted common share for the fiscal year ended September 30, 2022.
When both periods are adjusted for certain items, including gains on sale of real estate, federal relief proceeds from the 2017 Hurricane Irma and 2022 Hurricane Ian insurance proceeds and net realizable value adjustment, the Company had an adjusted net loss of $(3.23) per diluted common share for the fiscal year ended September 30, 2023, compared to an adjusted net income of $(0.21) per diluted common share for the fiscal year ended September 30, 2022. Adjusted EBITDA for the fiscal years ended September 30, 2023 and 2022 was $(16.1) million and $13.4 million, respectively.
The Company reported the following financial results:
(in thousands, except for per share amounts and percentages) | ||||||||||||||||||
Three Months Ended September 30, | Fiscal Years Ended September 30, | |||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||
Net income (loss) attributable to Alico, Inc. common stockholders | $ | 940 | $ | (21,080 | ) | 104.5% | $ | 1,835 | $ | 12,459 | (85.3)% | |||||||
Earnings (loss) per diluted common share | $ | 0.12 | $ | (2.78 | ) | 104.3% | $ | 0.24 | $ | 1.65 | (85.5)% | |||||||
EBITDA(1) | $ | 6,530 | $ | (19,840 | ) | 132.9% | $ | 23,034 | $ | 32,081 | (28.2)% | |||||||
Adjusted EBITDA(1) | $ | (3,532 | ) | $ | 2,983 | (218.4)% | $ | (16,055 | ) | $ | 13,406 | (219.8)% | ||||||
Net cash (used in) provided by operating activities | $ | (5,636 | ) | $ | (4,269 | ) | (32.0)% | $ | (6,254 | ) | $ | 6,523 | (195.9)% |
(1) “EBITDA” and “Adjusted EBITDA” are non-GAAP financial measures. See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures presented in this release to their most directly comparable GAAP measures.
These quarterly financial results also reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's gross profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
Alico Citrus Division Results
Citrus production for the fiscal years ended September 30, 2023 and 2022 is summarized in the following table.
(in thousands, except per box and per pound solids data) | |||||||||||
Fiscal Years Ended September 30, |
Change | ||||||||||
2023 | 2022 | Unit | % | ||||||||
Boxes Harvested: | |||||||||||
Early and Mid-Season | 979 | 2,175 | (1,196 | ) | (55.0)% | ||||||
Valencias | 1,669 | 3,274 | (1,605 | ) | (49.0)% | ||||||
Total Processed | 2,648 | 5,449 | (2,801 | ) | (51.4)% | ||||||
Fresh Fruit | 41 | 91 | (50 | ) | (54.9)% | ||||||
Total | 2,689 | 5,540 | (2,851 | ) | (51.5)% | ||||||
Pound Solids Produced: | |||||||||||
Early and Mid-Season | 4,586 | 11,034 | (6,448 | ) | (58.4)% | ||||||
Valencias | 8,702 | 17,756 | (9,054 | ) | (51.0)% | ||||||
Total | 13,288 | 28,790 | (15,502 | ) | (53.8)% | ||||||
Pound Solids per Box: | |||||||||||
Early and Mid-Season | 4.68 | 5.07 | (0.39 | ) | (7.7)% | ||||||
Valencias | 5.21 | 5.42 | (0.21 | ) | (3.9)% | ||||||
Price per Pound Solids: | |||||||||||
Early and Mid-Season | $ | 2.61 | $ | 2.56 | $ | 0.05 | 2.0% | ||||
Valencias | $ | 2.75 | $ | 2.68 | $ | 0.07 | 2.6% |
For the fiscal year ended September 30, 2023, Alico Citrus harvested 2.7 million boxes of fruit, a decrease of 51.5% from the prior year. This rate of decline in harvested production was substantially better than the USDA citrus report for the industry. The USDA reported a 61.7% decline in the total orange crop for the 2022-2023 harvest season, as compared to the prior year. As anticipated, the Company saw its average realized price per pound solids rise from $2.63 per pound solids in the prior fiscal year to $2.70 per pound solids in fiscal year 2023. The Company anticipates market prices in the upcoming 2023-2024 harvest season to be consistent or slightly above this past season’s market prices largely due to continued consumption of not-from-concentrate orange juice by retail consumers, low levels of inventory stocks at the juice processors and a tighter global supply for oranges.
Land Management and Other Operations Division Results
Land Management and Other Operations includes lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties, and other miscellaneous income.
Income from operations for the Land Management and Other Operations Division decreased for the fiscal year ended September 30, 2023, by $0.5 million, compared to the prior year. This decrease was primarily driven by a reduction in the leased acreage relating to grazing and hunting leases, due to land sales.
Management Comment
John Kiernan, President and Chief Executive Officer, commented:
During 2023, Alico was recovering from the aftermath of Hurricane Ian that occurred in September 2022, which damaged half of our crops intended for the 2023 harvest season, and our financial results were disappointing as we expected. The approximately $28.2 million of insurance proceeds that we received during the fiscal year were used to help maintain our grove caretaking programs for our approximately 49,000 citrus acres located across 7 counties in Florida so that Alico will be ready to harvest a healthy citrus crop in 2023-24. We continue to hope to receive federal disaster relief funds from the Consolidated Appropriations Act that was passed into law December 2022, although we cannot determine the amount of relief we may be eligible for, or the timing of any possible relief fund payments. Alico continues to support Florida Citrus Mutual, our industry trade group, as well as government officials and agencies, as they work to finalize federal relief programs for this 2022 storm. Although our 2023-24 harvesting activities are just beginning now, we are confident that Alico’s crop recovery this season will be significant because of our exceptional caretaking practices and the maturity of over 2 million trees planted by the Company since 2017. In addition, over 35% of our trees have now been treated with an oxytetracycline (“OTC”) injection since January 2023 to combat citrus greening, with the goal to improve fruit quality and decrease the fruit drop rate. The full extent of its benefits will not be measurable until after the 2023-24 harvest.
On September 18, 2023, Alico signed a contract with the State of Florida to sell the remaining 17,229 acres of the Alico Ranch for approximately $77.6 million. The deal is anticipated to close by February 2024. Once closed, we will have sold a total of approximately 69,000 acres of the Alico Ranch for approximately $226 million to more than 25 buyers since 2018. Plans for the use of the proceeds are being finalized, with reducing balances on our working capital credit line incurred during Hurricane Ian as a priority, as well as repayment of variable rate debt balances without penalty and for general corporate purposes. It is possible that net operating losses over the past two years will shield a significant amount of the expected gain on the pending ranch sale, and it is also possible that the if proceeds are used to repay variable debt balances, the Company‘s net debt balances could range between $75 million and $80 million at the end of fiscal year 2024, which is a substantial decrease from the $127.6 million net debt balance at September 30, 2023.
Alico is proud to share that in fiscal year 2024 it has already partnered with another large citrus grower to manage approximately 3,300 acres of their citrus groves, with all expenses reimbursed and a management fee paid to us for our services.
Outside of our citrus operations, Alico recently concluded its work with land-use planning professionals in Florida evaluating the long-term potential highest and best use of our real estate assets. To be clear, Alico will continue to conduct our regular citrus operations at all of our groves for years to come, but the work of those land-planning professionals led to a decision by Alico to commence the multi-year entitlement process for a 4,500-acre grove near Fort Myers, in Collier County. We plan on continuing citrus operations there, while considering options for the most profitable use of the property.
All Alico shareholder litigation related to the balance sheet restatement last December has been voluntarily dismissed, without prejudice, by the plaintiffs.
Alico has over 125 years of experience as a leader in Florida agriculture and land management. We will continue evaluating all of our properties to explore creative solutions to enhance and extract value. We seek to provide our investors with the benefits and stability of a conventional agriculture investment, with the optionality that comes with active land management.
Other Corporate Financial Information
General and administrative expense for the year ended September 30, 2023 was $10.6 million, compared to $10.1 million for the year ended September 30, 2022. The increase was principally attributable to an increase in legal and professional fees, as compared to the same period last year.
Other income, net, for the years ended September 30, 2023 and 2022 was $6.7 million and $37.8 million, respectively. The decrease in other income, net was primarily due to fewer land sales, which resulted in lower gains on sales of $11.5 million during the year ended September 30, 2023, from $41.1 million for the prior year period.
Dividend
On October 13, 2023, the Company paid a fourth quarter cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of September 29, 2023.
Balance Sheet and Liquidity
The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:
- The Company’s working capital was $43.7 million at September 30, 2023, representing a 3.90 to 1.00 ratio.
- The Company maintains a solid debt ratio. At September 30, 2023 and 2022, the ratios were 0.30 to 1.00 and 0.27 to 1.00, respectively.
- Available borrowings under its lines of credit were $70.0 million, at September 30, 2023.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding our anticipated sale of the Alico Ranch, expectations regarding market prices and the results of our 2023-24 harvest, business strategy, plans and objectives of management for future operations or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change and hurricanes and tropical storms, particularly because our citrus groves are geographically concentrated in Florida; damage and loss from disease including, but not limited to, citrus greening and citrus canker; any adverse event affecting our citrus business; our ability to effectively perform grove management services, or to effectively manage an expanded portfolio of groves; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties for a significant portion of our business; our ability to execute our strategic growth initiatives and whether they adequately address the challenges or opportunities we face; product contamination and product liability claims; water use regulations restricting our access to water.; changes in immigration laws; harm to our reputation; tax risks associated a Section 1031 Exchange; risks associated with the undertaking of one or more significant corporate transactions; the seasonality of our citrus business; fluctuations in our earnings due to market supply and prices and demand for our products; climate change, or legal, regulatory, or market measures to address climate change; ESG issues, including those related to climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies relating to our internal control over financial reporting ; macroeconomic conditions, such as rising inflation, the deadly conflicts in Ukraine and Israel, and the COVID-19 pandemic; system security risks, data protection breaches, cyber-attacks and systems integration issues; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 filed with the Securities and Exchange Commission (the “SEC”) on December 13, 2022, our Annual Report on Form 10-K for the year ended September 30, 2023 to be filed with the SEC and in our Quarterly Reports on Form 10-Q. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Brad Heine
Chief Financial Officer
(239) 226-2000
bheine@alicoinc.com
ALICO, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) | |||||||
September 30, 2023 |
September 30, 2022 |
||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,062 | $ | 865 | |||
Accounts receivable, net | 712 | 324 | |||||
Inventories | 52,481 | 27,682 | |||||
Income tax receivable | 1,200 | 1,116 | |||||
Assets held for sale | 1,632 | 205 | |||||
Prepaid expenses and other current assets | 1,718 | 1,424 | |||||
Total current assets | 58,805 | 31,616 | |||||
Restricted cash | 2,630 | — | |||||
Property and equipment, net | 361,849 | 372,479 | |||||
Goodwill | 2,246 | 2,246 | |||||
Other non-current assets | 2,823 | 2,914 | |||||
Total assets | $ | 428,353 | $ | 409,255 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 6,311 | $ | 3,366 | |||
Accrued liabilities | 5,363 | 9,062 | |||||
Current portion of long-term debt | 2,566 | 3,035 | |||||
Other current liabilities | 825 | 1,062 | |||||
Total current liabilities | 15,065 | 16,525 | |||||
Long-term debt, net | 101,410 | 102,913 | |||||
Lines of credit | 24,722 | 4,928 | |||||
Deferred income tax liabilities, net | 36,410 | 35,589 | |||||
Other liabilities | 369 | 435 | |||||
Total liabilities | 177,976 | 160,390 | |||||
Stockholders' equity: | |||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | |||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,610,551 and 7,586,995 shares outstanding at September 30, 2023 and September 30, 2022, respectively | 8,416 | 8,416 | |||||
Additional paid in capital | 20,045 | 19,784 | |||||
Treasury stock, at cost, 806,341 and 829,150 shares held at September 30, 2023 and September 30, 2022, respectively | (27,274 | ) | (27,948 | ) | |||
Retained earnings | 243,804 | 243,490 | |||||
Total Alico stockholders' equity | 244,991 | 243,742 | |||||
Noncontrolling interest | 5,386 | 5,123 | |||||
Total stockholders' equity | 250,377 | 248,865 | |||||
Total liabilities and stockholders' equity | $ | 428,353 | $ | 409,255 |
ALICO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) | |||||||||||
Years Ended September 30, | |||||||||||
2023 | 2022 | 2021 | |||||||||
Operating revenues: | |||||||||||
Alico Citrus | $ | 38,145 | $ | 89,681 | $ | 105,796 | |||||
Land Management and Other Operations | 1,701 | 2,266 | 2,768 | ||||||||
Total operating revenues | 39,846 | 91,947 | 108,564 | ||||||||
Operating expenses: | |||||||||||
Alico Citrus | 32,959 | 106,192 | 83,893 | ||||||||
Land Management and Other Operations | 441 | 520 | 778 | ||||||||
Total operating expenses | 33,400 | 106,712 | 84,671 | ||||||||
Gross profit (loss) | 6,446 | (14,765 | ) | 23,893 | |||||||
General and administrative expenses | 10,643 | 10,079 | 9,453 | ||||||||
(Loss) income from operations | (4,197 | ) | (24,844 | ) | 14,440 | ||||||
Other income (expense), net: | |||||||||||
Investment and interest income, net | 58 | 21 | 23 | ||||||||
Interest expense | (4,911 | ) | (3,324 | ) | (3,987 | ) | |||||
Gain on sale of property and equipment | 11,509 | 41,102 | 35,898 | ||||||||
Other income, net | — | — | 13 | ||||||||
Total other income, net | 6,656 | 37,799 | 31,947 | ||||||||
Income before income taxes | 2,459 | 12,955 | 46,387 | ||||||||
Income tax provision | 801 | 1,069 | 11,567 | ||||||||
Net income | 1,658 | 11,886 | 34,820 | ||||||||
Net loss attributable to noncontrolling interests | 177 | 573 | 39 | ||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 1,835 | $ | 12,459 | $ | 34,859 | |||||
Per share information attributable to Alico, Inc. common stockholders: | |||||||||||
Earnings per common share: | |||||||||||
Basic | $ | 0.24 | $ | 1.65 | $ | 4.64 | |||||
Diluted | $ | 0.24 | $ | 1.65 | $ | 4.64 | |||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | 7,602 | 7,560 | 7,516 | ||||||||
Diluted | 7,602 | 7,568 | 7,519 | ||||||||
Cash dividends declared per common share | $ | 0.20 | $ | 2.00 | $ | 1.36 |
ALICO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||||||
Years Ended September 30, | |||||||||||
2023 | 2022 | 2021 | |||||||||
Net cash (used in) provided by operating activities: | |||||||||||
Net income | $ | 1,658 | $ | 11,886 | $ | 34,820 | |||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | 15,487 | 15,229 | 15,122 | ||||||||
Debt issue costs expense | 141 | 255 | 179 | ||||||||
Deferred income tax provision (benefit) | 821 | (3,876 | ) | 2,249 | |||||||
Gain on sale of property and equipment | (11,509 | ) | (41,102 | ) | (35,898 | ) | |||||
Inventory net realizable value adjustment | 1,616 | 6,676 | — | ||||||||
Casualty loss – tree and building damage | — | 1,400 | — | ||||||||
Loss on disposal of property and equipment | 9,624 | 3,251 | 2,338 | ||||||||
Inventory casualty loss | — | 14,900 | — | ||||||||
Stock-based compensation expense | 935 | 1,235 | 1,230 | ||||||||
Other, net | (2 | ) | 160 | (117 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (388 | ) | 5,781 | (1,758 | ) | ||||||
Inventories | (26,415 | ) | (5,881 | ) | (2,522 | ) | |||||
Prepaid expenses | (294 | ) | (271 | ) | (115 | ) | |||||
Income tax receivable | (84 | ) | 2,117 | (2,452 | ) | ||||||
Other assets | 235 | (450 | ) | 575 | |||||||
Accounts payable and accrued liabilities | 2,420 | (5,111 | ) | 3,429 | |||||||
Other liabilities | (499 | ) | 324 | (576 | ) | ||||||
Net cash (used in) provided by operating activities | (6,254 | ) | 6,523 | 16,504 | |||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (16,656 | ) | (20,731 | ) | (22,258 | ) | |||||
Acquisition of citrus groves | (77 | ) | (136 | ) | (18,527 | ) | |||||
Proceeds from sale of property and equipment | 11,359 | 43,159 | 37,266 | ||||||||
Proceeds from property and casualty insurance | 839 | — | — | ||||||||
Other, net | 412 | 176 | 251 | ||||||||
Net cash (used in) provided by investing activities | (4,123 | ) | 22,468 | (3,268 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Repayments on revolving lines of credit | (59,458 | ) | (52,227 | ) | (50,735 | ) | |||||
Borrowings on revolving lines of credit | 79,252 | 57,155 | 47,793 | ||||||||
Principal payments on term loans | (2,098 | ) | (19,598 | ) | (21,957 | ) | |||||
Capital contribution received from noncontrolling interest | 441 | 294 | — | ||||||||
Proceeds from exercise of stock options | — | 465 | — | ||||||||
Dividends paid | (4,933 | ) | (15,101 | ) | (7,138 | ) | |||||
Net cash provided by (used in) financing activities | 13,204 | (29,012 | ) | (32,037 | ) | ||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | 2,827 | (21 | ) | (18,801 | ) | ||||||
Cash and cash equivalents and restricted cash at beginning of the period | 865 | 886 | 19,687 | ||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 3,692 | $ | 865 | $ | 886 | |||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest; net of amount capitalized | $ | 4,433 | $ | 3,192 | $ | 3,940 | |||||
Cash paid for income taxes | $ | — | $ | 3,430 | $ | 11,770 | |||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Dividends declared but unpaid | $ | 381 | $ | 3,793 | $ | 3,763 |
Non-GAAP Financial Measures
In addition to the GAAP financial measures, Alico utilizes the EBITDA, Adjusted EBITDA, Adjusted Net (Loss) Income per Diluted Common Share and Net Debt which are non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA, Adjusted Net (Loss) Income per Diluted Common Share and Net Debt are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Adjusted Net (Loss) Income per Diluted Common Share is defined as net income adjusted for non-recurring transactions divided by diluted common shares. Net Debt is defined as Current portion of long-term debt, Long-term debt, net and Lines of credit, less cash and cash equivalents.
Adjusted EBITDA
(in thousands) | ||||||||||||||||
Three Months Ended September 30, | Years Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) attributable to common stockholders | $ | 940 | $ | (21,080 | ) | $ | 1,835 | $ | 12,459 | |||||||
Interest expense | 1,293 | 699 | 4,911 | 3,324 | ||||||||||||
Income tax provision (benefit) | 495 | (3,212 | ) | 801 | 1,069 | |||||||||||
Depreciation, depletion, and amortization | 3,802 | 3,753 | 15,487 | 15,229 | ||||||||||||
EBITDA | 6,530 | (19,840 | ) | 23,034 | 32,081 | |||||||||||
Non-GAAP Adjustments: | ||||||||||||||||
Inventory Casualty Loss - Hurricane Ian | — | 14,900 | — | 14,900 | ||||||||||||
Inventory net realizable value adjustment - Hurricane Ian | — | 6,676 | 1,616 | 6,676 | ||||||||||||
Property Casualty Loss - Hurricane Ian | — | 1,400 | — | 1,400 | ||||||||||||
Employee stock compensation expense(1) | 66 | 145 | 347 | 574 | ||||||||||||
Federal relief - Hurricane Irma | — | — | (1,315 | ) | (1,123 | ) | ||||||||||
Insurance proceeds - Hurricane Ian | (5,987 | ) | — | (28,228 | ) | — | ||||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (4,141 | ) | (298 | ) | (11,509 | ) | (41,102 | ) | ||||||||
Adjusted EBITDA | $ | (3,532 | ) | $ | 2,983 | $ | (16,055 | ) | $ | 13,406 | ||||||
(1) Includes stock compensation expense for current executives, senior management and other employees. |
Adjusted Net Income (Loss) Earnings Per Diluted Common Share
(in thousands) | ||||||||||||||||
Three Months Ended September 30, | Years Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income (loss) attributable to common stockholders | $ | 940 | $ | (21,080 | ) | $ | 1,835 | $ | 12,459 | |||||||
Non-GAAP Adjustments: | ||||||||||||||||
Inventory Casualty Loss - Hurricane Ian | — | 14,900 | — | 14,900 | ||||||||||||
Inventory net realizable value adjustment - Hurricane Ian | — | 6,676 | 1,616 | 6,676 | ||||||||||||
Property Casualty Loss - Hurricane Ian | — | 1,400 | — | 1,400 | ||||||||||||
Employee stock compensation expense(1) | 66 | 145 | 347 | 574 | ||||||||||||
Federal relief - Hurricane Irma | — | — | (1,315 | ) | (1,123 | ) | ||||||||||
Insurance proceeds - Hurricane Ian | (5,987 | ) | — | (28,228 | ) | — | ||||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (4,141 | ) | (298 | ) | (11,509 | ) | (41,102 | ) | ||||||||
Tax impact(2) | 8,874 | (427 | ) | 12,735 | 4,613 | |||||||||||
Adjusted net (loss) income attributable to common stockholders | $ | (248 | ) | $ | 1,316 | $ | (24,519 | ) | $ | (1,603 | ) | |||||
Diluted common shares | 7,610 | 7,587 | 7,602 | 7,568 | ||||||||||||
Adjusted net (loss) income per diluted common share | $ | (0.03 | ) | $ | 0.17 | $ | (3.23 | ) | $ | (0.21 | ) | |||||
(1) Includes stock compensation expense for current executives, senior management and other employees. | ||||||||||||||||
(2) Benefit in the twelve-month period ended September 30, 2022 is the result of a charitable contribution related to a sales transaction with the State of Florida. |
Net Debt
(in thousands) | ||||||||
Years Ended September 30, | ||||||||
2023 | 2022 | |||||||
Current portion of long-term debt | $ | 2,566 | $ | 3,035 | ||||
Long-term debt, net | 101,410 | 102,913 | ||||||
Lines of credit | 24,722 | 4,928 | ||||||
Total Debt | 128,698 | 110,876 | ||||||
Cash and cash equivalents | (1,062 | ) | (865 | ) | ||||
Net Debt | $ | 127,636 | $ | 110,011 |
Source: Alico, Inc. ]]>
FORT MYERS, Fla., Dec. 01, 2023 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announced that the Company will release financial results for the fourth quarter and full year ended September 30, 2023, on Wednesday, December 6, after the market close.
The Company will host a conference call to discuss its financial results on Thursday, December 7, 2023, at 8:30 am Eastern Time. Interested parties may join the conference call by dialing 1-877-407-0792 in the United States and 1-201-689-8263 from outside of the United States. The participant identification to join the conference call is 13742944.
A telephone replay will be available on December 7, 2023, approximately three hours after the call concludes, and will be available through December 21, 2023. Listeners in the United States may dial 1-844-512-2921 and international listeners may dial 1-412-317-6671. The passcode for the playback is 13742944.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Brad Heine
Chief Financial Officer
(239) 226-2000
bheine@alicoinc.com
Source: Alico, Inc. ]]>
ABOUT ALICO
Alico Inc. has over 125 years of experience in agriculture, and currently manages approximately 49,000 acres of citrus groves in 7 counties across 31 locations. Alico continues to be the top citrus grower in the U.S. and the primary supplier to Tropicana, a leading orange juice brand in the country. Alico is known within the citrus industry for our exceptional caretaking practices, which recently resulted in a new partnership with a large citrus grower. Alico will manage their 3,300 acres of citrus groves, with all expenses reimbursed and a management fee paid per acre for caretaking services.
Alico Inc. will present at NobleCon19 on 4 December 2023 at 4:00PM Eastern Standard Time in Room Four, with a breakout session immediately following the presentation at 4:30PM. A high-definition video webcast of the presentation will be available the following day on our website at alicoinc.com and as part of a complete catalog of presentations available at Noble Capital Markets’ Conference website: www.nobleconference.com and on Channelchek www.channelchek.com the investor portal created by Noble. The webcast will be archived on the company's website, the NobleCon website, and on Channelchek.com for 90 days following the event.
ABOUT NOBLE CAPITAL MARKETS, INC.
Noble Capital Markets (“Noble”) is research driven investment bank that has supported small & microcap companies since 1984. As a FINRA and SEC licensed broker dealer Noble provides institutional-quality equity research, merchant and investment banking, and order execution services. In 2005, Noble established NobleCon, an investor conference that has grown substantially over the last decade.
LEARN MORE ABOUT ALICO INC.
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico (Nasdaq: "ALCO") at www.alicoinc.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding our Chief Financial Officer transition, business strategy, plans and objectives of management for future operations or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change; damage and loss to our citrus groves from disease including but not limited to citrus greening and citrus canker; hurricanes and tropical storms given our geographic concentration in Florida; any adverse event affecting our citrus business; our ability to maintain our market share in a highly competitive business; future citrus production estimates; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties; heightened risks as a result of the sale of a majority of ownership of Tropicana to a French private equity firm; supply and demand pricing; development and execution of our strategic growth initiatives; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; risks associated with acquisition of additional agricultural assets and other businesses; adverse impacts from dispositions of our assets; harm to our reputation; tax risks associated with a “Section 1031 Exchange”; undertaking one or more significant corporate transactions; seasonality of our citrus business; significant competition in our agricultural operations; fluctuations in our earnings as a result of market supply and prices and demand for our products; climate change, or legal, regulatory or market measures to address climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; any weakness or instability in the real estate industry; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies, including as a result of restatement of our financial statements as of September 30, 2021, and the end of certain quarterly periods; the impact of any restatements and any resulting investigations, legal or administrative proceedings; the effect of inflation on our operations, including as a result of the conflict in Ukraine; increased costs as a result of being a public company; system security risks; the COVID-19 pandemic; any harm by natural disasters or epidemics; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and risks related with repurchases; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 filed with the Securities and Exchange Commission (the “SEC”) on December 13, 2022 and in our Quarterly Reports on Form 10-Q. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
INVESTOR RELATIONS CONTACT
Any questions can be emailed to: investorrelations@alicoinc.com
Source: Alico, Inc. ]]>
COMPANY HISTORY
- Over 125 years of experience, currently managing approximately 50,000 acres of citrus groves in 31 locations across 7 counties.
- Top citrus grower in the US and primary supplier to Tropicana, a leading orange juice brand in the US.
- Recognized within the citrus industry for exceptional caretaking practices, one result being a new partnership with a large citrus grower to manage another 2,500 acres of citrus groves, with expenses reimbursed and a management fee paid per acre for its services.
CITRUS OPERATIONS
- Alico is still recovering from the aftermath of Hurricane Ian in 2022, which damaged half of its crops intended for the 2023 harvest season. Alico hopes to receive federal disaster relief funds from the Consolidated Appropriations Act that was passed into law December 2022, but cannot determine the amount of relief for which it may be eligible. Alico continues to support Florida Citrus Mutual, its industry trade group, and government agencies as they work to finalize federal relief programs.
- Over 35% of Alico's trees have been treated with an oxytetracycline or ‘OTC’ injection since January 2023 to combat citrus greening with the goal to improve fruit quality and decrease fruit drop rate. Full extent of its benefits will not be measurable until after the 2024 harvest.
- Alico is confident that its crop recovery in the 2024 harvest season will be significant because of its exceptional caretaking practices, proactive OTC treatment, and the maturing of over 2 million trees planted by the Company since 2017.
REAL ESTATE
- On September 18, 2023, Alico signed a contract with the State of Florida to sell its remaining 17,000 acres of the Alico Ranch for roughly $77.6 million. The deal is anticipated to close before February of 2024. Once closed, the pending contract will result in a total of approximately 69,000 acres of the Alico Ranch sold for $226 million to over 25 buyers since 2018. Plans for use of proceeds are being finalized, with reducing balances on revolving and working capital credit lines incurred since Hurricane Ian in September 2022 a priority. Repayment of variable rate debt balances without penalty is also a likely use of net proceeds from the sale.
- Alico continues to evaluate all of its properties to explore creative solutions to enhance and extract value. Alico seeks to provide investors with the benefits and stability of a conventional agriculture investment with the optionality that comes with active land management.
- Alico recently concluded its work with land-use planning professionals to evaluate the long-term potential value of our real estate assets. This led to the commencement of the multi-year entitlement process for a 4,500-acre grove near Fort Myers in Collier County. Alico plans to continue citrus operations while exploring the property's highest and best use.
FINANCIALS
- Consistent with our past practices, all future capital allocation decisions will be evaluated to maximize returns to shareholders.
- Alico has also been notified that all shareholder litigation related to the balance sheet restatement last December has been voluntarily dismissed without prejudice by the plaintiffs.
ABOUT ALICO
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which includes land leasing and related support operations. Learn more about Alico (Nasdaq: "ALCO") at www.alicoinc.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding business strategy, plans and objectives of management for future operations, receipt of federal disaster relief funds, benefits of ‘OTC’ injection in Alico’s trees, our crop recovery in the 2024 harvest season, closing of the Alico ranch sale, or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change; damage and loss to our citrus groves from disease including but not limited to citrus greening and citrus canker; hurricanes and tropical storms given our geographic concentration in Florida; any adverse event affecting our citrus business; our ability to maintain our market share in a highly competitive business; future citrus production estimates; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties; heightened risks as a result of the sale of a majority of ownership of Tropicana to a French private equity firm; supply and demand pricing; development and execution of our strategic growth initiatives; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; risks associated with acquisition of additional agricultural assets and other businesses; adverse impacts from dispositions of our assets; harm to our reputation; tax risks associated with a “Section 1031 Exchange”; undertaking one or more significant corporate transactions; seasonality of our citrus business; significant competition in our agricultural operations; fluctuations in our earnings as a result of market supply and prices and demand for our products; climate change, or legal, regulatory or market measures to address climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; any weakness or instability in the real estate industry; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies, including as a result of restatement of our financial statements as of September 30, 2021, and the end of certain quarterly periods; the impact of any restatements and any resulting investigations, legal or administrative proceedings; the effect of inflation on our operations, including as a result of the conflict in Ukraine; increased costs as a result of being a public company; system security risks; the COVID-19 pandemic; any harm by natural disasters or epidemics; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and risks related with repurchases; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 filed with the Securities and Exchange Commission (the “SEC”) on December 13, 2022 and in our Quarterly Reports on Form 10-Q. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
INVESTOR RELATIONS CONTACT
Any questions can be emailed to: investorrelations@alicoinc.com
Source: Alico, Inc. ]]>
As the new Chief Financial Officer, principal financial officer, and principal accounting officer for Alico, Mr. Heine will be responsible for all corporate finance, treasury and accounting functions of the Company and will report directly to John Kiernan, the Company's President and Chief Executive Officer.
"We are grateful for the service Perry has given to Alico over the past year and wish him well in his next endeavors,” said Mr. Kiernan.
Mr. Kiernan continued, “Brad’s recent background as a senior accounting executive for a dynamic international company, combined with his broad financial and business experience, will help us leverage our efforts of increasing shareholder value. Our management team will rely on Brad’s leadership in providing financial analysis, modeling and decision support to help Alico maintain our competitive position within the Florida citrus industry. We believe his experience with automation and technical accounting will complement the depth of our current staff and I look forward to working closely with him as we approach the beginning of our next fiscal year."
Mr. Heine, age 52, most recently served as Senior Vice President - Corporate Controller of Wejo Group Limited, a provider of cloud and software analytics for connected, electric, and autonomous mobility. Prior to that, Mr. Heine served as Vice President - Accounting at IAC InterActive Corp, a holding company comprised of media and internet companies, and in various positions of increasing seniority at Avis Budget Group Inc., a rental car company. Mr. Heine is a Certified Public Accountant who began his career as an auditor with Deloitte & Touche. He earned a BBA in public accounting from Pace University and a MBA in Finance from Rutgers University.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding our Chief Financial Officer transition, business strategy, plans and objectives of management for future operations or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change; damage and loss to our citrus groves from disease including but not limited to citrus greening and citrus canker; hurricanes and tropical storms given our geographic concentration in Florida; any adverse event affecting our citrus business; our ability to maintain our market share in a highly competitive business; future citrus production estimates; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties; heightened risks as a result of the sale of a majority of ownership of Tropicana to a French private equity firm; supply and demand pricing; development and execution of our strategic growth initiatives; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; risks associated with acquisition of additional agricultural assets and other businesses; adverse impacts from dispositions of our assets; harm to our reputation; tax risks associated with a “Section 1031 Exchange”; undertaking one or more significant corporate transactions; seasonality of our citrus business; significant competition in our agricultural operations; fluctuations in our earnings as a result of market supply and prices and demand for our products; climate change, or legal, regulatory or market measures to address climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; any weakness or instability in the real estate industry; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies, including as a result of restatement of our financial statements as of September 30, 2021, and the end of certain quarterly periods; the impact of any restatements and any resulting investigations, legal or administrative proceedings; the effect of inflation on our operations, including as a result of the conflict in Ukraine; increased costs as a result of being a public company; system security risks; the COVID-19 pandemic; any harm by natural disasters or epidemics; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and risks related with repurchases; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 filed with the Securities and Exchange Commission (the “SEC”) on December 13, 2022 and in our Quarterly Reports on Form 10-Q. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Investor Contact:
Investor Relations
InvestorRelations@alicoinc.com
Source: Alico, Inc.
Source: Alico, Inc. ]]>
- Company reports net income attributable to Alico, Inc. common stockholders of $11.8 million and EBITDA of $18.8 million for the third fiscal quarter of 2023. The Company reports adjusted net (loss) attributable to Alico, Inc. common stockholders of ($5.6) million and Adjusted EBITDA of ($1.3) million for the third fiscal quarter of 2023.
- Box production is down from the previous year due to greater fruit drop from the impacts of Hurricane Ian.
- The Company has received approximately $21.7 million in crop insurance proceeds through July 31, 2023, of which approximately $21.4 million were received through June 30, 2023.
- Ranch land sales continued during the third quarter, with the Company selling approximately 548 acres to a third party for approximately $2.7 million in gross proceeds.
- The Company has approximately $76.8 million of undrawn credit available under its two lines of credit as of June 30, 2023.
- Balance sheet remains strong with a working capital ratio of 3.10 to 1.00.
Results of Operations
For the nine months ended June 30, 2023, the Company reported net income attributable to Alico common stockholders of approximately $0.9 million, compared to net income attributable to Alico common stockholders of approximately $33.5 million for the nine months ended June 30, 2022. For the nine months ended June 30, 2023, the Company had earnings of $0.12 per diluted common share, compared to earnings of $4.44 per diluted common share for the nine months ended June 30, 2022. This was primarily due to (i) the timing of the gains on sale of real estate, property and equipment and assets held for sale; (ii) a decrease in the gross profit primarily due to the lower revenue as a result of the reduced fruit production due to the accelerated fruit drop caused by the impacts of Hurricane Ian; and (iii) receipt of Hurricane Ian insurance proceeds. In addition, the Company experienced cost increases in fertilizer, herbicide, labor, and fuel in maintaining its groves. These cost increases, coupled with lower box production for both the Early and Mid-Season and the Valencia harvest, resulted in a higher cost of sales per box as compared to the same period in the prior year. When both periods are adjusted for certain items, including gains on sale of real estate, federal relief proceeds from the 2017 Hurricane Irma and 2022 Hurricane Ian insurance proceeds and net realizable value adjustment, the Company had an adjusted net (loss) of ($3.19) per diluted common share for the nine months ended June 30, 2023, compared to an adjusted net (loss) of ($0.39) per diluted common share for the nine months ended June 30, 2022.
For the nine months ended June 30, 2023, the Company earned EBITDA of $16.5 million, compared to $51.9 million for the nine months ended June 30, 2022. Adjusted EBITDA for the nine months ended June 30, 2023 and June 30, 2022 was approximately ($12.5) million and $10.4 million, respectively.
These financial results also reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company’s gross profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
The Company reported the following financial results:
(in thousands, except for per share amounts and percentages) | ||||||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 11,832 | $ | 2,706 | $ | 9,126 | $ | 895 | $ | 33,539 | $ | (32,644 | ) | |||||||||||
Earnings per diluted common share | $ | 1.56 | $ | 0.36 | $ | 1.20 | $ | 0.12 | $ | 4.44 | $ | (4.32 | ) | |||||||||||
EBITDA(1) | $ | 18,789 | $ | 8,370 | $ | 10,419 | $ | 16,504 | $ | 51,921 | $ | (35,417 | ) | |||||||||||
Adjusted EBITDA(1) | $ | (1,286 | ) | $ | 2,762 | $ | (4,048 | ) | $ | (12,523 | ) | $ | 10,423 | $ | (22,946 | ) | ||||||||
Net cash provided by (used in) operating activities | $ | 6,492 | $ | 1,994 | $ | 4,498 | $ | (618 | ) | $ | 10,792 | $ | (11,410 | ) |
(1) “EBITDA” and “Adjusted EBITDA” are non-GAAP financial measures. See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures presented in this release to their most directly comparable GAAP measures.
Alico Citrus Division Results
Citrus production for the three and nine months ended June 30, 2023 and 2022 is summarized in the following table.
(in thousands, except per box and per pound solids data) | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
June 30, | Change | June 30, | Change | |||||||||||||||||||||||||||||
2023 | 2022 | Unit | % | 2023 | 2022 | Unit | % | |||||||||||||||||||||||||
Boxes Harvested: | ||||||||||||||||||||||||||||||||
Early and Mid-Season | — | — | — | — | % | 979 | 2,175 | (1,196 | ) | (55.0 | )% | |||||||||||||||||||||
Valencias | 415 | 1,391 | (976 | ) | (70.2 | )% | 1,669 | 3,274 | (1,605 | ) | (49.0 | )% | ||||||||||||||||||||
Total Processed | 415 | 1,391 | (976 | ) | (70.2 | )% | 2,648 | 5,449 | (2,801 | ) | (51.4 | )% | ||||||||||||||||||||
Fresh Fruit | 1 | — | 1 | NM | 41 | 88 | (47 | ) | (53.8 | )% | ||||||||||||||||||||||
Total | 416 | 1,391 | (975 | ) | (70.1 | )% | 2,689 | 5,537 | (2,848 | ) | (51.4 | )% | ||||||||||||||||||||
Pound Solids Produced: | ||||||||||||||||||||||||||||||||
Early and Mid-Season | — | — | — | — | % | 4,586 | 11,034 | (6,448 | ) | (58.4 | )% | |||||||||||||||||||||
Valencias | 2,142 | 7,975 | (5,833 | ) | (73.1 | )% | 8,702 | 17,756 | (9,054 | ) | (51.0 | )% | ||||||||||||||||||||
Total | 2,142 | 7,975 | (5,833 | ) | (73.1 | )% | 13,288 | 28,790 | (15,502 | ) | (53.8 | )% | ||||||||||||||||||||
Pound Solids per Box | ||||||||||||||||||||||||||||||||
Early and Mid-Season | — | — | — | — | % | 4.68 | 5.07 | (0.39 | ) | (7.7 | )% | |||||||||||||||||||||
Valencias | 5.16 | 5.73 | (0.57 | ) | (9.9 | )% | 5.21 | 5.42 | (0.21 | ) | (3.9 | )% | ||||||||||||||||||||
Price per Pound Solids: | ||||||||||||||||||||||||||||||||
Early and Mid-Season | $ | — | $ | — | $ | — | — | % | $ | 2.61 | $ | 2.56 | $ | 0.05 | 2.0 | % | ||||||||||||||||
Valencias | $ | 2.83 | $ | 2.71 | $ | 0.12 | 4.4 | % | $ | 2.76 | $ | 2.67 | $ | 0.09 | 3.4 | % |
NM = Not meaningful
For the nine months ended June 30, 2023, Alico Citrus harvested approximately 2.7 million boxes of fruit, a decrease of approximately 51% from the same period in the prior fiscal year. The decrease was primarily due to a reduction in both the Early and Mid-Season harvest and the Valencia harvest. After the completion of the harvest season the Early and Mid-Season crop was down 55% in boxes harvested, as compared to the prior year, and the Valencia crop was down 49%, as compared to the same period in the prior year. The overall decrease in the number of boxes harvested and revenues generated from the Early and Mid-Season and Valencia fruit for the 2023 harvest, as compared to the 2022 harvest, is primarily due to the increased rate of fruit drop caused by the impact of Hurricane Ian. The Company’s average realized/blended price per pound solids for the nine months ended June 30, 2023 increased by approximately 3.0%, as compared to the prior year period.
Land Management and Other Operations Division Results
Land Management and Other Operations includes lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties and other miscellaneous income.
Income from operations for the Land Management and Other Operations Division decreased for the nine months ended June 30, 2023 by $0.2 million, compared to the nine months ended June 30, 2022. This decrease was primarily driven by timing of the revenues related to mining operations, as well as a reduction in the leased acreage relating to grazing and hunting leases, due to the sale of certain acres which were previously included under these lease arrangements, thus resulting in fewer acres now being leased under these grazing and hunting leases.
Management Comment
John Kiernan, President and Chief Executive Officer, commented, “The 2022-2023 citrus harvest season has been a difficult one for Alico, because of the impacts from Hurricane Ian last September, but we are looking forward to the upcoming season with guarded optimism. Historically, it has taken two or more seasons for citrus production to recover from such a devastating storm, but our consistent grove caretaking practices, combined with the new citrus greening therapy we began to apply this year, gives us confidence that Alico’s production will substantially increase for the 2023-24 citrus harvest season, as compared to the 2022-23 citrus harvest season. Of the millions of trees we planted beginning in 2017, many are now mature enough to produce meaningful quantities of fruit this season and help support a level of expectation for a better upcoming harvest for Alico.
“The overall decrease in box production for Alico was 51.4% for the 2022-2023 harvest season vs. the prior year. Although this is better than the 61.5% decrease in box production for the overall Florida orange crop forecasted by the USDA, as compared to the same period in the prior year, this lower level of production was insufficient to support our operating cash flow requirements. However, Alico had the balance sheet strength to weather this temporary impact to our business.
“We maintain crop insurance and property and casualty insurance on all of our groves, and through June 30, 2023 have received approximately $22.2 million in insurance proceeds, with the remaining $0.3 million of crop insurance proceeds received in July 2023. The Consolidated Appropriations Act, which was passed into law in December 2022, has federal funds earmarked for disaster relief. We hope that these funds eventually follow the funding mechanism previously established for the disbursement of the Hurricane Irma relief funds. We continue to support Florida Citrus Mutual, our industry trade group, and government agencies as they work to finalize federal relief programs available under the Act; however, we cannot determine the amount, if any, of federal relief the Company may be eligible for related to the damage Hurricane Ian caused us.
“We began treating our trees in January 2023 with the new application of an oxytetracycline product (“OTC”) via trunk injections as a citrus greening therapy following its approval by the Florida Department of Agriculture and Consumer Services in October 2022. This application has been utilized in citrus, apple and other crops. Through June 30, 2023, we have treated over 35% of our trees with OTC, which is expected to mitigate some of the impacts of citrus greening and is expected to decrease the rate of fruit drop, as well as improve fruit quality. The extent of any benefit of the OTC application therapy will not be measurable until the completion of the fiscal year 2024 harvest.”
Mr. Kiernan continued, “Currently, Alico expects that pricing next season will be in line with the past season. We have the majority of our fruit under contract for the 2023-2024 harvest season and have extended one of our contracts with Tropicana that recently expired. The two-year extension is through the 2024-2025 harvest season, with improved pricing. Although Alico is not making any financial projections for the next fiscal year at this time, we are observing lower market prices for some of our required fertilizer and chemicals. Labor and fuel remain critical resources for us, and although we utilize both as efficiently as possible in our daily operations, inflation over the past few years has increased the base level of those operating expenses. Our relationships with our lenders remain strong and we have $76.8 million of undrawn capacity under a revolving line of credit, which matures in November 2029, and a working capital line of credit, which matures in November 2025, to provide ample liquidity as Alico recovers from Hurricane Ian.
“Through June 30, 2023 we have sold approximately 1,436 acres of ranch land, for net proceeds of approximately $7.6 million. The Company is actively engaged with interested third parties on certain parcels of additional ranch land at prices we continue to believe are competitive. Also, in the current fiscal year we closed on two very small citrus grove purchases that are contiguous with one of our groves.”
Mr. Kiernan concluded, “Our work with land-use planning professionals to optimize the long-term potential value for our real assets is expected to conclude later this calendar year. Alico wants to provide investors with the benefits and stability of conventional agriculture investment, with the enhanced optionality that comes through active land management.”
Other Corporate Financial Information
General and administrative expense for the nine months ended June 30, 2023 was approximately $8.1 million, compared to approximately $7.7 million for the nine months ended June 30, 2022. The increase was primarily due to an increase in legal and professional fees of approximately $0.4 million, as compared to the same period in the prior year.
Other income (expense), net for the nine months ended June 30, 2023 and 2022 was approximately $3.8 million and approximately $38.2 million, respectively. The decrease in other income, net, is primarily due to gains on sale of real estate, property and equipment and assets held for sale of approximately $7.4 million relating to the sale during the nine months ended June 30, 2023 of approximately 1,436 acres, in the aggregate, from the Alico Ranch to several third parties. By comparison, gains on sale of real estate, property and equipment and assets held for sale of approximately $40.8 million arose from the sale during the nine months ended June 30, 2022 of approximately 9,418 acres, in the aggregate, from the Alico Ranch to several third parties. Additionally, an increase in interest expense of approximately $1.0 million for the nine months ended June 30, 2023, as compared to the nine months ended June 30, 2022, was the result of an increase in borrowings under the WCLC, and an increase in interest rates on its variable rate term debt and the variable rate interest on the WCLC.
Dividend
On July 14, 2023 the Company paid a third quarter cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of June 30, 2023.
Balance Sheet and Liquidity
The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:
- The Company’s working capital was approximately $32.3 million at June 30, 2023, representing a 3.10 to 1.00 ratio.
- The Company maintains a solid debt-to-equity ratio. At June 30, 2023, September 30, 2022, and September 30, 2021, the ratios were 0.49 to 1.00, 0.45 to 1.00, and 0.50 to 1.00, respectively.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding our future results of operations and financial position, the Company’s eligibility for future federal relief, pursuit of opportunistic land sales, recovery timeline for our groves, impact of OTC on our rate of fruit drop and fruit quality, business strategy, plans and objectives of management for future operations or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” ,”hopes,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements.
These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including, but not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change; damage and loss to our citrus groves from disease including but not limited to citrus greening and citrus canker; hurricanes and tropical storms given our geographic concentration in Florida; any adverse event affecting our citrus business; our ability to maintain our market share in a highly competitive business; future citrus production estimates; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties; heightened risks as a result of the sale of a majority of ownership of Tropicana to a French private equity firm; supply and demand pricing; development and execution of our strategic growth initiatives; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; risks associated with acquisition of additional agricultural assets and other businesses; adverse impacts from dispositions of our assets; harm to our reputation; tax risks associated with a “Section 1031 Exchange”; undertaking one or more significant corporate transactions; seasonality of our citrus business; significant competition in our agricultural operations; fluctuations in our earnings as a result of market supply and prices and demand for our products; climate change, or legal, regulatory or market measures to address climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; any weakness or instability in the real estate industry; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies, including as a result of restatement of our financial statements as of September 30, 2021, and the end of certain quarterly periods; the impact of any restatements and any resulting investigations, legal or administrative proceedings; the effect of inflation on our operations, including as a result of the conflict in Ukraine; increased costs as a result of being a public company; system security risks; the COVID-19 pandemic; any harm by natural disasters or epidemics; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and risks related with repurchases; and the other factors described under the sections "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 filed with the Securities and Exchange Commission (the “SEC”) on December 13, 2022 (the “2022 Annual Report on Form 10-K”) and in our Quarterly Reports on Form 10-Q. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
ALICO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) |
||||||||
June 30, | September 30, | |||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,592 | $ | 865 | ||||
Accounts receivable, net | 4,363 | 324 | ||||||
Inventories | 38,833 | 27,682 | ||||||
Income tax receivable | 1,046 | 1,116 | ||||||
Assets held for sale | 130 | 205 | ||||||
Prepaid expenses and other current assets | 1,731 | 1,424 | ||||||
Total current assets | 47,695 | 31,616 | ||||||
Property and equipment, net | 368,290 | 372,479 | ||||||
Goodwill | 2,246 | 2,246 | ||||||
Other non-current assets | 2,895 | 2,914 | ||||||
Total assets | $ | 421,126 | $ | 409,255 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 7,063 | $ | 3,366 | ||||
Accrued liabilities | 5,428 | 9,062 | ||||||
Long-term debt, current portion | 2,098 | 3,035 | ||||||
Other current liabilities | 800 | 1,062 | ||||||
Total current liabilities | 15,389 | 16,525 | ||||||
Long-term debt: | ||||||||
Principal amount, net of current portion | 102,791 | 103,661 | ||||||
Less: deferred financing costs, net | (653 | ) | (748 | ) | ||||
Long-term debt less current portion and deferred financing costs, net | 102,138 | 102,913 | ||||||
Lines of credit | 17,910 | 4,928 | ||||||
Deferred income tax liabilities, net | 35,755 | 35,589 | ||||||
Other liabilities | 282 | 435 | ||||||
Total liabilities | 171,474 | 160,390 | ||||||
Commitments and Contingencies (Note 12) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,605,189 and 7,586,995 shares outstanding at June 30, 2023 and September 30, 2022, respectively | 8,416 | 8,416 | ||||||
Additional paid in capital | 20,011 | 19,784 | ||||||
Treasury stock, at cost, 810,956 and 829,150 shares held at June 30, 2023 and September 30, 2022, respectively | (27,444 | ) | (27,948 | ) | ||||
Retained earnings | 243,245 | 243,490 | ||||||
Total Alico stockholders' equity | 244,228 | 243,742 | ||||||
Noncontrolling interest | 5,424 | 5,123 | ||||||
Total stockholders' equity | 249,652 | 248,865 | ||||||
Total liabilities and stockholders' equity | $ | 421,126 | $ | 409,255 |
ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) |
||||||||||||||||
Three Months Ended June 30, |
Nine Months Ended June 30, |
|||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating revenues: | ||||||||||||||||
Alico Citrus | $ | 6,712 | $ | 25,533 | $ | 37,917 | $ | 89,313 | ||||||||
Land Management and Other Operations | 572 | 405 | 1,249 | 1,603 | ||||||||||||
Total operating revenues | 7,284 | 25,938 | 39,166 | 90,916 | ||||||||||||
Operating expenses: | ||||||||||||||||
Alico Citrus | (8,322 | ) | 24,489 | 33,493 | 83,365 | |||||||||||
Land Management and Other Operations | 104 | 138 | 300 | 430 | ||||||||||||
Total operating expenses | (8,218 | ) | 24,627 | 33,793 | 83,795 | |||||||||||
Gross profit | 15,502 | 1,311 | 5,373 | 7,121 | ||||||||||||
General and administrative expenses | 2,930 | 2,557 | 8,106 | 7,679 | ||||||||||||
Income (loss) from operations | 12,572 | (1,246 | ) | (2,733 | ) | (558 | ) | |||||||||
Other income (expense), net: | ||||||||||||||||
Interest expense | (1,196 | ) | (854 | ) | (3,618 | ) | (2,625 | ) | ||||||||
Gain on sale of real estate, property and equipment and assets held for sale | 2,605 | 5,755 | 7,368 | 40,804 | ||||||||||||
Other income, net | 14 | 9 | 44 | 19 | ||||||||||||
Total other income, net | 1,423 | 4,910 | 3,794 | 38,198 | ||||||||||||
Income before income taxes | 13,995 | 3,664 | 1,061 | 37,640 | ||||||||||||
Income tax provision | 1,923 | 1,002 | 306 | 4,281 | ||||||||||||
Net income | 12,072 | 2,662 | 755 | 33,359 | ||||||||||||
Net (income) loss attributable to noncontrolling interests | (240 | ) | 44 | 140 | 180 | |||||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 11,832 | $ | 2,706 | $ | 895 | $ | 33,539 | ||||||||
Per share information attributable to Alico, Inc. common stockholders: | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.56 | $ | 0.36 | $ | 0.12 | $ | 4.44 | ||||||||
Diluted | $ | 1.56 | $ | 0.36 | $ | 0.12 | $ | 4.44 | ||||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic | 7,605 | 7,570 | 7,599 | 7,551 | ||||||||||||
Diluted | 7,605 | 7,589 | 7,599 | 7,561 | ||||||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.50 | $ | 0.15 | $ | 1.50 |
ALICO, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) |
||||||||
Nine Months Ended June 30, |
||||||||
2023 | 2022 | |||||||
Net cash (used in) provided by operating activities: | ||||||||
Net income | $ | 755 | $ | 33,359 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 11,685 | 11,476 | ||||||
Debt issue costs expense | 106 | 214 | ||||||
Gain on sale of real estate, property and equipment and assets held for sale | (7,368 | ) | (40,804 | ) | ||||
Loss on disposal of long-lived assets | 5,535 | 2,228 | ||||||
Inventory net realizable value adjustment | 1,616 | — | ||||||
Deferred income tax provision (benefit) | 166 | (4,758 | ) | |||||
Stock-based compensation expense | 731 | 934 | ||||||
Other | (4 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (4,039 | ) | 1,509 | |||||
Inventories | (12,767 | ) | 4,376 | |||||
Prepaid expenses | (307 | ) | (428 | ) | ||||
Income tax receivable | 70 | 3,233 | ||||||
Other assets | 315 | (556 | ) | |||||
Accounts payable and accrued liabilities | 3,355 | (3,618 | ) | |||||
Income taxes payable | — | 3,138 | ||||||
Other liabilities | (467 | ) | 489 | |||||
Net cash (used in) provided by operating activities | (618 | ) | 10,792 | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (12,923 | ) | (15,112 | ) | ||||
Acquisition of citrus groves | (77 | ) | (136 | ) | ||||
Net proceeds from sale of real estate, property and equipment and assets held for sale | 7,583 | 42,718 | ||||||
Notes receivable | (570 | ) | — | |||||
Change in deposits on purchase of citrus trees | 269 | 65 | ||||||
Net cash (used in) provided by investing activities | (5,718 | ) | 27,535 | |||||
Cash flows from financing activities: | ||||||||
Repayments on revolving lines of credit | (51,953 | ) | (46,470 | ) | ||||
Borrowings on revolving lines of credit | 64,935 | 46,470 | ||||||
Principal payments on term loans | (1,807 | ) | (18,839 | ) | ||||
Capital contribution received from noncontrolling interest | 441 | — | ||||||
Exercise of stock options | — | 465 | ||||||
Dividends paid | (4,553 | ) | (11,310 | ) | ||||
Net cash provided by (used in) financing activities | 7,063 | (29,684 | ) | |||||
Net increase in cash and cash equivalents and restricted cash | 727 | 8,643 | ||||||
Cash and cash equivalents and restricted cash at beginning of the period | 865 | 886 | ||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 1,592 | $ | 9,529 |
Non-GAAP Financial Measures
Adjusted EBITDA | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income attributable to common stockholders | $ | 11,832 | $ | 2,706 | $ | 895 | $ | 33,539 | ||||||||
Interest expense | 1,196 | 854 | 3,618 | 2,625 | ||||||||||||
Income tax provision | 1,923 | 1,002 | 306 | 4,281 | ||||||||||||
Depreciation, depletion, and amortization | 3,838 | 3,808 | 11,685 | 11,476 | ||||||||||||
EBITDA | 18,789 | 8,370 | 16,504 | 51,921 | ||||||||||||
Non-GAAP Adjustments: | ||||||||||||||||
Employee stock compensation expense(1) | 61 | 147 | 281 | 429 | ||||||||||||
Inventory net realizable value adjustment | — | — | 1,616 | — | ||||||||||||
Federal relief proceeds - Hurricane Irma | (49 | ) | — | (1,315 | ) | (1,123 | ) | |||||||||
Insurance proceeds - Hurricane Ian | (17,482 | ) | — | (22,241 | ) | — | ||||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (2,605 | ) | (5,755 | ) | (7,368 | ) | (40,804 | ) | ||||||||
Adjusted EBITDA | $ | (1,286 | ) | $ | 2,762 | $ | (12,523 | ) | $ | 10,423 | ||||||
(1) Includes stock compensation expense for current executives, senior management and other employees. |
Adjusted (Loss) Income Per Diluted Common Share | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net income attributable to common stockholders | $ | 11,832 | $ | 2,706 | $ | 895 | $ | 33,539 | ||||||||
Non-GAAP Adjustments: | ||||||||||||||||
Employee stock compensation expense(1) | 61 | 147 | 281 | 429 | ||||||||||||
Federal relief proceeds - Hurricane Irma | (49 | ) | — | (1,315 | ) | (1,123 | ) | |||||||||
Inventory net realizable value adjustment | — | — | 1,616 | — | ||||||||||||
Insurance proceeds - Hurricane Ian | (17,482 | ) | — | (22,241 | ) | — | ||||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (2,605 | ) | (5,755 | ) | (7,368 | ) | (40,804 | ) | ||||||||
Tax impact(2) | 2,670 | 1,340 | 3,861 | 5,040 | ||||||||||||
Adjusted net (loss) attributable to common stockholders | $ | (5,573 | ) | $ | (1,562 | ) | $ | (24,271 | ) | $ | (2,919 | ) | ||||
Diluted common shares | 7,605 | 7,589 | 7,599 | 7,561 | ||||||||||||
Adjusted net (loss) per diluted common share | $ | (0.73 | ) | $ | (0.21 | ) | $ | (3.19 | ) | $ | (0.39 | ) | ||||
(1) Includes stock compensation expense for current executives, senior management and other employees. | ||||||||||||||||
(2) Benefit in the nine-month period ended June 30, 2022 is the result of a charitable contribution related to a sales transaction with the State of Florida. |
In addition to the GAAP financial measures, Alico utilizes the EBITDA, Adjusted EBITDA, and Adjusted Net (Loss) Income per Diluted Common Share which are non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA and Adjusted Net (Loss) Income per Diluted Common Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Adjusted Net (Loss) Income per Diluted Common Share is defined as net income adjusted for non-recurring transactions divided by diluted common shares.
Source: Alico, Inc. ]]>
FORT MYERS, Fla., July 20, 2023 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announced that the Company will release financial results for the third quarter ended June 30, 2023, on Thursday, August 3, before the markets open.
The Company will host a conference call to discuss its financial results on August 3, 2023, at 8:30 am Eastern Time. Interested parties may join the conference call by dialing 1-888-886-7786 in the United States and 1-416-764-8658 from outside of the United States. The participant identification to join the conference call is 95409966. Guests may dial-in on the numbers above and be answered by an operator, or click the Call me™ link for instant telephone access to the event:
Call me™: https://emportal.ink/3NGx51R
The Call me™ link will be made active 15 minutes prior to scheduled start time.
A telephone replay will be available on August 3, 2023, approximately three hours after the call concludes, and will be available through Thursday, August 17, 2023. Listeners in the United States may dial 1-844-512-2921 and international listeners may dial 1-412-317-6671. The passcode for the playback is 95409966.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Alico Land Management and Other Operations, which include environmental services, land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Investor Contact:
Investor Relations
239-226-2060
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
Source: Alico, Inc. ]]>
- Company reports net loss attributable to Alico, Inc. common stockholders of $7.8 million and EBITDA of ($3.2) million for second fiscal quarter of 2023. The Company reports adjusted net loss attributable to Alico, Inc. common stockholders of $12.3 million and Adjusted EBITDA of ($7.8) million for the second fiscal quarter of 2023.
- Box production is down from the previous year due to greater fruit drop from the impacts of Hurricane Ian.
- The Company has received approximately $13.7 million in crop insurance proceeds through April 30, 2023, of which approximately $4.8 million was received through March 31, 2023.
- Ranch land sales continued with the Company selling approximately 279 acres of the Alico Ranch to several third parties for approximately $1.6 million in gross proceeds.
- The Company has approximately $73.6 million of undrawn credit available under its two lines of credit as of March 31, 2023.
- Balance sheet remains strong with a working capital ratio of 2.58 to 1.00.
Results of Operations
For the six months ended March 31, 2023, the Company reported net loss attributable to Alico common stockholders of approximately $10.9 million, compared to net income attributable to Alico common stockholders of approximately $30.8 million for the six months ended March 31, 2022. For the six months ended March 31, 2023, the Company had loss of $1.44 per diluted common share, compared to earnings of $4.08 per diluted common share for the six months ended March 31, 2022. This was primarily due to (i) the timing of the gains on sale of real estate, property and equipment and assets held for sale; and (ii) a decrease in the gross profit primarily due to the lower revenue as a result of the reduced fruit production due to the accelerated fruit drop caused by the impacts of Hurricane Ian. In addition, the Company experienced cost increases in fertilizer, herbicide, labor, and fuel in maintaining its groves. These cost increases coupled with lower box production for both the Early and Mid-Season and the Valencia harvest resulted in a higher cost of sales per box as compared to the same period in the prior year.
For the six months ended March 31, 2023, the Company earned EBITDA of ($2.3) million, compared to $43.6 million for the six months ended March 31, 2022. Adjusted EBITDA for the six months ended March 31, 2023 and March 31, 2022 was approximately ($11.2) million and $7.7 million, respectively.
For the six months ended March 31, 2023, the Company had a net loss per diluted share of $1.44 as compared to net earnings per share of $4.08 per diluted share for the six months ended March 31, 2022. When both periods are adjusted for certain items, including gains on sale of real estate, Federal relief proceeds from the 2017 Hurricane Irma and 2022 Hurricane Ian insurance proceeds and net realizable value adjustment, the Company had an adjusted net loss of $2.46 per diluted common share for the six months ended March 31, 2023, compared to an adjusted net loss of $0.18 per diluted common share for the six months ended March 31, 2022.
These financial results also reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's gross profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
The Company reported the following financial results:
(in thousands, except for per share amounts and percentages) | ||||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||
Net (loss) income attributable to Alico, Inc. common stockholders | $ | (7,787 | ) | $ | 20,702 | $ | (28,489 | ) | $ | (10,937 | ) | $ | 30,833 | $ | (41,770 | ) | ||||||||
Earnings per diluted common share | $ | (1.02 | ) | $ | 2.74 | $ | (3.76 | ) | $ | (1.44 | ) | $ | 4.08 | $ | (5.52 | ) | ||||||||
EBITDA (1) | $ | (3,150 | ) | $ | 31,983 | $ | (35,133 | ) | $ | (2,285 | ) | $ | 43,551 | $ | (45,836 | ) | ||||||||
Adjusted EBITDA (1) | $ | (7,795 | ) | $ | 5,290 | $ | (13,085 | ) | $ | (11,237 | ) | $ | 7,661 | $ | (18,898 | ) | ||||||||
Net cash provided by (used in) operating activities | $ | 2,555 | $ | 18,406 | $ | (15,851 | ) | $ | (7,110 | ) | $ | 8,798 | $ | (15,908 | ) | |||||||||
(1) See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures presented in this release to their most directly comparable GAAP measures.
Alico Citrus Division Results
Citrus production for the three and six months ended March 31, 2023 and 2022 is summarized in the following table.
(in thousands, except per box and per pound solids data) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
March 31, | Change | March 31, | Change | |||||||||||||||||||||||||||||
2023 | 2022 | Unit | % | 2023 | 2022 | Unit | % | |||||||||||||||||||||||||
Boxes Harvested: | ||||||||||||||||||||||||||||||||
Early and Mid-Season | 174 | 1,348 | (1,174 | ) | (87.1 | )% | 979 | 2,175 | (1,196 | ) | (55.0 | )% | ||||||||||||||||||||
Valencias | 1,254 | 1,883 | (629 | ) | (33.4 | )% | 1,254 | 1,883 | (629 | ) | (33.4 | )% | ||||||||||||||||||||
Total Processed | 1,428 | 3,231 | (1,803 | ) | (55.8 | )% | 2,233 | 4,058 | (1,825 | ) | (45.0 | )% | ||||||||||||||||||||
Fresh Fruit | 4 | 19 | (15 | ) | (78.9 | )% | 40 | 88 | (48 | ) | (54.5 | )% | ||||||||||||||||||||
Total | 1,432 | 3,250 | (1,818 | ) | (55.9 | )% | 2,273 | 4,146 | (1,873 | ) | (45.2 | )% | ||||||||||||||||||||
Pound Solids Produced: | ||||||||||||||||||||||||||||||||
Early and Mid-Season | 849 | 7,013 | (6,164 | ) | (87.9 | )% | 4,586 | 11,034 | (6,448 | ) | (58.4 | )% | ||||||||||||||||||||
Valencias | 6,560 | 9,781 | (3,221 | ) | (32.9 | )% | 6,560 | 9,781 | (3,221 | ) | (32.9 | )% | ||||||||||||||||||||
Total | 7,409 | 16,794 | (9,385 | ) | (55.9 | )% | 11,146 | 20,815 | (9,669 | ) | (46.5 | )% | ||||||||||||||||||||
Pound Solids per Box | ||||||||||||||||||||||||||||||||
Early and Mid-Season | 4.88 | 5.20 | (0.32 | ) | (6.2 | )% | 4.68 | 5.07 | (0.39 | ) | (7.7 | )% | ||||||||||||||||||||
Valencias | 5.23 | 5.19 | 0.04 | 0.7 | % | 5.23 | 5.19 | 0.04 | 0.7 | % | ||||||||||||||||||||||
Price per Pound Solids: | ||||||||||||||||||||||||||||||||
Early and Mid-Season | $ | 2.79 | $ | 2.55 | $ | 0.24 | 9.2 | % | $ | 2.61 | $ | 2.56 | $ | 0.05 | 2.0 | % | ||||||||||||||||
Valencias | $ | 2.73 | $ | 2.64 | $ | 0.09 | 3.4 | % | $ | 2.73 | $ | 2.64 | $ | 0.09 | 3.4 | % |
For the six months ended March 31, 2023, Alico Citrus harvested approximately 2.3 million boxes of fruit, a decrease of approximately 45% from the same period of the prior fiscal year. The decrease was primarily due to a reduction in both the Early and Mid-Season Harvest and the Valenica harvest. The Early and Mid-Season harvest, which has been completed, and was down 55% in boxes harvested as compared to the prior year. The Valencia harvest commenced in February and, as of March 31, 2023, the boxes harvested was down approximately 33% compared to the same period in the prior year. The harvest was completed by the end of April and is lower than prior year. The overall decrease in the number of boxes harvested and revenues generated from the Early and Mid-Season and Valencia fruit for the 2023 harvest, as compared to the 2022 harvest, is primarily due to the increased rate of fruit drop caused by the impact of Hurricane Ian. The Company’s average realized/blended price per pound solids for the six months ended March 31, 2023 increased by approximately 3.1%, as compared to the same period of the prior fiscal year. The Company anticipates market prices in the 2022/2023 harvest season to be consistent with the 2021/2022 season’s market prices, largely due to low levels of inventory stocks at the juice processors and a tighter global supply for oranges.
Land Management and Other Operations Division Results
Land Management and Other Operations includes lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties and other miscellaneous income.
Income from operations for the Land Management and Other Operations Division decreased for the six months ended March 31, 2023 by $0.4 million, compared to the six months ended March 31, 2022. This decrease was primarily driven by timing of the revenues related to mining operations, as well as a reduction in the leased acreage relating to grazing and hunting leases, due to the sale of certain acres which were previously included under these lease arrangements, thus resulting in fewer acres now being leased under these grazing and hunting leases.
Management Comment
John Kiernan, President and Chief Executive Officer, commented, “Alico, along with the Florida Citrus industry, has experienced significant reductions in revenue due to having less fruit available for sale as a result of the impacts of Hurricane Ian. The April 11, 2023 USDA Citrus Crop Forecast estimates a 61% decline in the Florida Orange box production, as compared to the prior year. As we enter the second half of our fiscal year, with the 2022-2023 harvest season behind us, the Alico management team is focused on the caretaking of our groves and preparing them for the 2023-2024 harvest. Based upon prior experience with storms of this nature, we anticipate it may take up to two full seasons, or more, for our groves to recover to pre-hurricane production levels.
“As we have reported previously, we maintain crop insurance on all of our groves, and in addition to the approximately $4.8 million received in the quarter ended March 31, 2023, in the month of April we have received additional crop insurance proceeds of approximately $8.9 million. We have additional claims pending and have been working closely with our insurers and adjusters to determine the remaining amount of insurance recovery we may be entitled to.
“In December 2022 the federal government passed into law the Consolidated Appropriations Act, and funds were earmarked for disaster relief; however, the mechanism of the funding is still unclear, and additional legislation has been introduced to allow the funding to follow the mechanism established for Hurricane Irma relief funds. We continue working with Florida Citrus Mutual, the industry trade group, and government agencies on the federal relief programs available under the Act; however, we cannot determine the amount of any relief the Company may be eligible for.
“Alico has been able to navigate through the impacts of Hurricane Ian and unseasonably warm and dry weather over the past several months only through the investments and actions that the Company has taken over the past several years.”
Mr. Kiernan continued, “The Company continues to engage with interested third parties on certain parcels of ranch land at prices we continue to believe are competitive. Through March 31, 2023 we have sold approximately 888 acres, for net proceeds of approximately $4.9 million. The company has approximately 19,000 acres of the Alico Ranch remaining. Also, in April 2023 we closed on a very small citrus grove purchase that is contiguous with one of our groves.
“In 2022, we began testing a new application of the Citrus Greening therapy Oxytetracycline (“OTC”), which is used in citrus and other crops. After a review of the new application method by the U.S. Environmental Protection Agency, the Florida Department of Agriculture and Consumer Services granted a special local-need registration on October 28, 2022. We began treating our trees on January 16, 2023, as the product and application devices became available, and treated approximately ten percent of our trees as of March 31, 2023. The extent of any benefit of the OTC application will not be measurable until the completion of the fiscal year 2024 harvest. Although not a cure for citrus greening, this OTC application mitigates some of the impacts of citrus greening and has shown to decrease the rate of fruit drop and improve fruit quality.”
Other Corporate Financial Information
General and administrative expense for the six months ended March 31, 2023 was approximately $5.2 million, compared to approximately $5.1 million for the six months ended March 31, 2022. The increase was primarily due to an increase in legal fees, which was partially offset by lower stock compensation expenses.
Other income (expense), net for the six months ended March 31, 2023 and 2022 was approximately $2.4 million and approximately $33.3 million, respectively. The decrease in other income, net, is primarily due to gains on sale of real estate, property and equipment and assets held for sale of approximately $4.8 million relating to the sale during the six months ended March 31, 2023 of approximately 888 acres, in the aggregate, from the Alico ranch to several third parties. By comparison, for the six months ended March 31, 2022, the Company recognized gains of approximately $35.0 million relating to the sale of real estate, property and equipment and assets held for sale. Additionally, an increase in interest expense of approximately $0.7 million for the six months ended March 31, 2023, as compared to the six months ended March 31, 2022, was the result of an increase in borrowings under the working capital line of credit, and an increase in interest rates on its variable rate term debt and the variable rate interest on the line of credit.
Dividend
On April 14, 2023 the Company paid a second quarter cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of March 31, 2023.
Balance Sheet and Liquidity
The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:
- The Company’s working capital was approximately $22.7 million at March 31, 2023, representing a 2.58 to 1.00 ratio.
- The Company maintains a solid debt-to-equity ratio. At March 31, 2023, September 30, 2022, and September 30, 2021, the ratios were 0.53 to 1.00, 0.45 to 1.00, and 0.50 to 1.00, respectively.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on our current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions.
Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: adverse weather conditions, natural disasters and other natural conditions, including the effects of climate change; damage and loss to our citrus groves from disease including but not limited to citrus greening and citrus canker; hurricanes and tropical storms given our geographic concentration in Florida; any adverse event affecting our citrus business; our ability to maintain our market share in a highly competitive business; our dependency on our relationship with Tropicana and Tropicana’s relationship with certain third parties; heightened risks as a result of the sale of a majority of ownership of Tropicana to a French private equity firm; supply and demand pricing; development and execution of our strategic growth initiatives; product contamination and product liability claims; water use regulations restricting our access to water; changes in immigration laws; risks associated with acquisition of additional agricultural assets and other businesses; adverse impacts from dispositions of our assets; harm to our reputation; tax risks associated with a “Section 1031 Exchange”; undertaking one or more significant corporate transactions; seasonality of our citrus business; significant competition in our agricultural operations; fluctuations in our earnings as a result of market supply and prices and demand for our products; climate change, or legal, regulatory or market measures to address climate change and sustainability; increases in labor, personnel and benefits costs; increases in commodity or raw product costs, such as fuel and chemical costs; transportation risks; any change or the classification or valuation methods employed by county property appraisers related to our real estate taxes; any weakness or instability in the real estate industry; liability for the use of fertilizers, pesticides, herbicides and other potentially hazardous substances; compliance with applicable environmental laws; loss of key employees; material weaknesses and other control deficiencies, including as a result of restatement of our financial statements as of September 30, 2021, and the end of certain quarterly periods; the impact of any restatements and any resulting investigations, legal or administrative proceedings; the effect of inflation on our operations, including as a result of the conflict in Ukraine; increased costs as a result of being a public company; system security risks; the COVID-19 pandemic; any harm by natural disasters or epidemics; our indebtedness and ability to generate sufficient cash flow to service our debt obligations; higher interest expenses as a result of variable rates of interest for our debt; our ability to continue to pay cash dividends; and risks related with repurchases. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors, including those Risks Factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, and our Quarterly Reports on Form 10-Q. Except as required by law, we do not undertake an obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
ALICO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, | September 30, | |||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 148 | $ | 865 | ||||
Accounts receivable, net | 8,970 | 324 | ||||||
Inventories | 23,407 | 27,682 | ||||||
Income tax receivable | 2,855 | 1,116 | ||||||
Assets held for sale | 159 | 205 | ||||||
Prepaid expenses and other current assets | 1,434 | 1,424 | ||||||
Total current assets | 36,973 | 31,616 | ||||||
Property and equipment, net | 369,101 | 372,479 | ||||||
Goodwill | 2,246 | 2,246 | ||||||
Other non-current assets | 3,241 | 2,914 | ||||||
Total assets | $ | 411,561 | $ | 409,255 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,017 | $ | 3,366 | ||||
Accrued liabilities | 3,785 | 9,062 | ||||||
Long-term debt, current portion | 1,629 | 3,035 | ||||||
Other current liabilities | 880 | 1,062 | ||||||
Total current liabilities | 14,311 | 16,525 | ||||||
Long-term debt: | ||||||||
Principal amount, net of current portion | 103,550 | 103,661 | ||||||
Less: deferred financing costs, net | (684 | ) | (748 | ) | ||||
Long-term debt less current portion and deferred financing costs, net | 102,866 | 102,913 | ||||||
Lines of credit | 21,122 | 4,928 | ||||||
Deferred income tax liabilities, net | 35,641 | 35,589 | ||||||
Other liabilities | 300 | 435 | ||||||
Total liabilities | 174,240 | 160,390 | ||||||
Commitments and Contingencies (Note 12) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,599,492 and 7,586,995 shares outstanding at March 31, 2023 and September 30, 2022, respectively | 8,416 | 8,416 | ||||||
Additional paid in capital | 19,985 | 19,784 | ||||||
Treasury stock, at cost, 816,653 and 829,150 shares held at March 31, 2023 and September 30, 2022, respectively | (27,616 | ) | (27,948 | ) | ||||
Retained earnings | 231,793 | 243,490 | ||||||
Total Alico stockholders' equity | 232,578 | 243,742 | ||||||
Noncontrolling interest | 4,743 | 5,123 | ||||||
Total stockholders' equity | 237,321 | 248,865 | ||||||
Total liabilities and stockholders' equity | $ | 411,561 | $ | 409,255 |
ALICO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended March 31, |
Six Months Ended March 31, |
|||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating revenues: | ||||||||||||||||
Alico Citrus | $ | 20,937 | $ | 49,032 | $ | 31,205 | $ | 63,780 | ||||||||
Land Management and Other Operations | 357 | 609 | 677 | 1,198 | ||||||||||||
Total operating revenues | 21,294 | 49,641 | 31,882 | 64,978 | ||||||||||||
Operating expenses: | ||||||||||||||||
Alico Citrus | 27,520 | 45,490 | 41,815 | 58,876 | ||||||||||||
Land Management and Other Operations | 102 | 152 | 196 | 292 | ||||||||||||
Total operating expenses | 27,622 | 45,642 | 42,011 | 59,168 | ||||||||||||
Gross (loss) profit | (6,328 | ) | 3,999 | (10,129 | ) | 5,810 | ||||||||||
General and administrative expenses | 2,667 | 2,538 | 5,176 | 5,122 | ||||||||||||
(Loss) income from operations | (8,995 | ) | 1,461 | (15,305 | ) | 688 | ||||||||||
Other income (expense), net: | ||||||||||||||||
Interest expense | (1,274 | ) | (870 | ) | (2,422 | ) | (1,771 | ) | ||||||||
Gain on sale of real estate, property and equipment and assets held for sale | 1,574 | 26,604 | 4,763 | 35,049 | ||||||||||||
Other income, net | 30 | 1 | 30 | 10 | ||||||||||||
Total other income, net | 330 | 25,735 | 2,371 | 33,288 | ||||||||||||
(Loss) income before income taxes | (8,665 | ) | 27,196 | (12,934 | ) | 33,976 | ||||||||||
Income tax (benefit) provision | (534 | ) | 6,579 | (1,617 | ) | 3,279 | ||||||||||
Net (loss) income | (8,131 | ) | 20,617 | (11,317 | ) | 30,697 | ||||||||||
Net loss attributable to noncontrolling interests | 344 | 85 | 380 | 136 | ||||||||||||
Net (loss) income attributable to Alico, Inc. common stockholders | $ | (7,787 | ) | $ | 20,702 | $ | (10,937 | ) | $ | 30,833 | ||||||
Per share information attributable to Alico, Inc. common stockholders: | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | (1.02 | ) | $ | 2.74 | $ | (1.44 | ) | $ | 4.09 | ||||||
Diluted | $ | (1.02 | ) | $ | 2.74 | $ | (1.44 | ) | $ | 4.08 | ||||||
Weighted-average number of common shares outstanding: | ||||||||||||||||
Basic | 7,599 | 7,552 | 7,596 | 7,543 | ||||||||||||
Diluted | 7,599 | 7,556 | 7,596 | 7,548 | ||||||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.50 | $ | 0.10 | $ | 1.00 |
ALICO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Six Months Ended March 31, |
||||||||
2023 | 2022 | |||||||
Net cash (used in) provided by operating activities: | ||||||||
Net (loss) income | $ | (11,317 | ) | $ | 30,697 | |||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 7,847 | 7,668 | ||||||
Debt issue costs expense | 71 | 85 | ||||||
Gain on sale of real estate, property and equipment and assets held for sale | (4,763 | ) | (35,049 | ) | ||||
Loss on disposal of long-lived assets | 4,032 | 909 | ||||||
Inventory net realizable value adjustment | 1,616 | — | ||||||
Deferred income tax benefit | 52 | (4,746 | ) | |||||
Stock-based compensation expense | 533 | 630 | ||||||
Other | 18 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (8,646 | ) | (6,422 | ) | ||||
Inventories | 2,659 | 10,194 | ||||||
Prepaid expenses | (10 | ) | (74 | ) | ||||
Income tax receivable | (1,739 | ) | 3,233 | |||||
Other assets | 211 | (653 | ) | |||||
Accounts payable and accrued liabilities | 2,681 | (2,015 | ) | |||||
Income taxes payable | — | 4,072 | ||||||
Other liabilities | (355 | ) | 269 | |||||
Net cash (used in) provided by operating activities | (7,110 | ) | 8,798 | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (8,445 | ) | (10,428 | ) | ||||
Acquisition of citrus groves | (29 | ) | (136 | ) | ||||
Net proceeds from sale of real estate, property and equipment and assets held for sale | 4,927 | 36,657 | ||||||
Notes receivable | (570 | ) | — | |||||
Change in deposits on purchase of citrus trees | 6 | (95 | ) | |||||
Net cash (used in) provided by investing activities | (4,111 | ) | 25,998 | |||||
Cash flows from financing activities: | ||||||||
Repayments on revolving lines of credit | (24,995 | ) | (46,470 | ) | ||||
Borrowings on revolving lines of credit | 41,189 | 46,470 | ||||||
Principal payments on term loans | (1,517 | ) | (2,143 | ) | ||||
Exercise of stock options | — | 170 | ||||||
Dividends paid | (4,173 | ) | (7,533 | ) | ||||
Net cash provided by (used in) financing activities | 10,504 | (9,506 | ) | |||||
Net (decrease) increase in cash and cash equivalents and restricted cash | (717 | ) | 25,290 | |||||
Cash and cash equivalents and restricted cash at beginning of the period | 865 | 886 | ||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 148 | $ | 26,176 |
Non-GAAP Financial Measures
Adjusted EBITDA | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net (loss) income attributable to common stockholders | $ | (7,787 | ) | $ | 20,702 | $ | (10,937 | ) | $ | 30,833 | ||||||
Interest expense | 1,274 | 870 | 2,422 | 1,771 | ||||||||||||
Income tax (benefit) provision | (534 | ) | 6,579 | (1,617 | ) | 3,279 | ||||||||||
Depreciation, depletion, and amortization | 3,897 | 3,832 | 7,847 | 7,668 | ||||||||||||
EBITDA | (3,150 | ) | 31,983 | (2,285 | ) | 43,551 | ||||||||||
Non-GAAP Adjustments: | ||||||||||||||||
Employee stock compensation expense(1) | 72 | 86 | 220 | 282 | ||||||||||||
Inventory net realizable value adjustment | 1,616 | — | 1,616 | — | ||||||||||||
Federal relief proceeds - Hurricane Irma | — | (175 | ) | (1,266 | ) | (1,123 | ) | |||||||||
Insurance proceeds - Hurricane Ian | (4,759 | ) | — | (4,759 | ) | — | ||||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (1,574 | ) | (26,604 | ) | (4,763 | ) | (35,049 | ) | ||||||||
Adjusted EBITDA | $ | (7,795 | ) | $ | 5,290 | $ | (11,237 | ) | $ | 7,661 | ||||||
(1) Includes stock compensation expense for current executives, senior management and other employees. |
Adjusted (Loss) Income Per Diluted Common Share | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net (loss) income attributable to common stockholders | $ | (7,787 | ) | $ | 20,702 | $ | (10,937 | ) | $ | 30,833 | ||||||
Non-GAAP Adjustments: | ||||||||||||||||
Employee stock compensation expense(1) | 72 | 86 | 220 | 282 | ||||||||||||
Federal relief proceeds - Hurricane Irma | — | (175 | ) | (1,266 | ) | (1,123 | ) | |||||||||
Inventory net realizable value adjustment | 1,616 | — | 1,616 | — | ||||||||||||
Insurance proceeds - Hurricane Ian | (4,759 | ) | — | (4,759 | ) | — | ||||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (1,574 | ) | (26,604 | ) | (4,763 | ) | (35,049 | ) | ||||||||
Tax impact(2) | 84 | 6,435 | 1,191 | 3,700 | ||||||||||||
Adjusted net (loss) income attributable to common stockholders | $ | (12,348 | ) | $ | 444 | $ | (18,698 | ) | $ | (1,357 | ) | |||||
Diluted common shares | 7,599 | 7,556 | 7,596 | 7,548 | ||||||||||||
Adjusted net (loss) income per diluted common share | $ | (1.62 | ) | $ | 0.06 | $ | (2.46 | ) | $ | (0.18 | ) | |||||
(1) Includes stock compensation expense for current executives, senior management and other employees. | ||||||||||||||||
(2) Benefit in the six-month period ended March 31, 2022 is the result of a charitable contribution related to a sales transaction with the State of Florida. |
In addition to the GAAP financial measures, Alico utilizes the EBITDA, Adjusted EBITDA, and Adjusted Net (Loss) Income per Diluted Common Share which are non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA and Adjusted Net (Loss) Income per Diluted Common Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Adjusted Net (Loss) Income per Diluted Common Share is defined as net income adjusted for non-recurring transactions divided by diluted common shares.
Source: Alico, Inc. ]]>
FORT MYERS, Fla., April 20, 2023 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announced that the Company will release financial results for the second quarter ended March 31, 2023, on Thursday, May 4, before the market open.
The Company will host a conference call to discuss its financial results on May 4, 2023, at 8:30 am Eastern Time. Interested parties may join the conference call by dialing 1-888-886-7786 in the United States and 1-416-764-8658 from outside of the United States. The participant identification to join the conference call is 10649055. Guests may dial-in on the numbers above and be answered by an operator, or click the Call me™ link for instant telephone access to the event:
Call me™: https://emportal.ink/40Q92TC
The Call me™ link will be made active 15 minutes prior to scheduled start time.
A telephone replay will be available on May 4, 2023, approximately three hours after the call concludes, and will be available through Thursday, May 18, 2023. Listeners in the United States may dial 1-844-512-2921 and international listeners may dial 1-412-317-6671. The passcode for the playback is 10649055.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Alico Land Management and Other Operations, which include environmental services, land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Investor Contact:
Investor Relations
239-226-2060
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
Source: Alico, Inc. ]]>
- Company reports net loss attributable to Alico, Inc. common stockholders of $3.2 million and EBITDA of $0.9 million for fiscal quarter. After adjusting for certain non-recurring items, Company reports adjusted net loss attributable to Alico, Inc. common stockholders of $6.3 million and Adjusted EBITDA of ($3.4) million.
- During the fiscal quarter ended December 31, 2022, the Company sold approximately 609 acres of the Alico Ranch to several third parties for approximately $3.3 million.
- Overall box production for the Early and Mid-Season crop will be lower than prior year production, as we accelerated the harvest due to increased rate of fruit drop as a result of Hurricane Ian.
- Company has continued Balance Sheet strength, with working capital of $27.3 million.
Results of Operations
For the first fiscal quarter ended December 31, 2022, the Company reported net loss attributable to Alico common stockholders of approximately $3.2 million, compared to net income attributable to Alico common stockholders of approximately $10.1 million for the fiscal quarter ended December 31, 2021. For the fiscal quarter ended December 31, 2022, the Company had earnings of ($0.41) per diluted common share, compared to earnings of $1.34 per diluted common share for the fiscal quarter ended December 31, 2021. This was primarily due to (i) an increase in the cost of sales resulting from higher fertilizer, chemical and fuel costs incurred, as well as from a larger percentage of costs being allocated to the cost of sales in the three months ended December 31, 2022 because of the decrease in the Early and Mid-Season fruit production due to the impact of Hurricane Ian; and (ii) the timing of the gains on sale of real estate, property and equipment and assets held for sale.
For the fiscal quarter ended December 31, 2022, the Company earned EBITDA of $0.9 million, compared to $11.6 million for the fiscal quarter ended December 31, 2021. Adjusted EBITDA for the quarters ended December 31, 2022 and December 31, 2021 was approximately ($3.4) million and $2.4 million, respectively.
When both periods are adjusted for certain non-recurring items, including gains on sale of real estate and Federal relief proceeds from the 2017 storm Hurricane Irma, the Company had an adjusted net loss of $0.84 per diluted common share for the fiscal quarter ended December 31, 2022, compared to an adjusted net loss of $0.24 per diluted common share for the fiscal quarter ended December 31, 2021.
These financial results also reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's gross profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
The Company reported the following financial results:
(in thousands, except for per share amounts and percentages) | ||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||
2022 | 2021 | Change | ||||||||||||||
Net (loss) income attributable to Alico, Inc. common stockholders | $ | (3,150 | ) | $ | 10,131 | $ | (13,281 | ) | (131.1 | )% | ||||||
Earnings per diluted common share | $ | (0.41 | ) | $ | 1.34 | $ | (1.75 | ) | (130.6 | )% | ||||||
EBITDA (1) | $ | 865 | $ | 11,568 | $ | (10,703 | ) | (92.5 | )% | |||||||
Adjusted EBITDA (1) | $ | (3,441 | ) | $ | 2,371 | $ | (5,812 | ) | NM | |||||||
Net cash used in operating activities | $ | (9,665 | ) | $ | (9,608 | ) | $ | (57 | ) | 0.6 | % |
(1) See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures presented in this release to their most directly comparable GAAP measures.
NM - Not Meaningful
Alico Citrus Division Results
Citrus production for the three months ended December 31, 2022 and 2021 is summarized in the following table.
(in thousands, except per box and per pound solids data) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 31, | Change | |||||||||||||||
2022 | 2021 | Unit | % | |||||||||||||
Boxes Harvested: | ||||||||||||||||
Early and Mid-Season | 805 | 827 | (22 | ) | (2.7 | )% | ||||||||||
Total Processed | 805 | 827 | (22 | ) | (2.7 | )% | ||||||||||
Fresh Fruit | 36 | 69 | (33 | ) | (47.8 | )% | ||||||||||
Total | 841 | 896 | (55 | ) | (6.1 | )% | ||||||||||
Pound Solids Produced: | ||||||||||||||||
Early and Mid-Season | 3,737 | 4,021 | (284 | ) | (7.1 | )% | ||||||||||
Total | 3,737 | 4,021 | (284 | ) | (7.1 | )% | ||||||||||
Pound Solids per Box | ||||||||||||||||
Early and Mid-Season | 4.64 | 4.86 | (0.22 | ) | (4.5 | )% | ||||||||||
Price per Pound Solids: | ||||||||||||||||
Early and Mid-Season | $ | 2.57 | $ | 2.58 | $ | (0.01 | ) | (0.4 | )% |
For the three months ended December 31, 2022, Alico Citrus harvested approximately 0.8 million boxes of fruit, a decrease of approximately 6.1% from the first quarter of the prior fiscal quarter. The decrease in revenue for the three months ended December 31, 2022, compared to the three months ended December 31, 2021, was primarily due to a decrease in grove management services and a decrease in revenue generated from the Early and Mid-Season harvest. The Company will complete the harvesting earlier in the current fiscal year, as compared to the prior fiscal year, for its Early and Mid-Season fruit and will recognize an overall decrease in the number of boxes harvested and revenues generated from the Early and Mid-Season fruit for the 2023 harvest, as compared to the 2022 harvest, due to the increased rate of fruit drop due to the impact of Hurricane Ian. The Company’s average realized/blended price per pound solids remained relatively flat, as compared to the first quarter of the prior fiscal year. The Company anticipates market prices in the 2022/2023 harvest season to be consistent with this past season’s market prices largely due to low levels of inventory stocks at the juice processors and a tighter global supply for oranges.
Land Management and Other Operations Division Results
Land Management and Other Operations includes lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties and other miscellaneous income.
Income from operations for the Land Management and Other Operations Division decreased for the three months ended December 31, 2022 by $0.3 million, compared to the three months ended December 31, 2021. This decrease was primarily driven by timing of the revenues related to mining operations, as well as a reduction in the leased acreage relating to grazing and hunting leases, due to the sale of certain acres which were previously included under these lease arrangements, thus resulting in fewer acres now being leased under these grazing and hunting leases.
Management Comment
John Kiernan, President and Chief Executive Officer, commented, “As we start fiscal year 2023, the Company continues to maintain a strong balance sheet, which will enable the company to navigate through the lingering impacts of Hurricane Ian on our 2023 harvest season. As a reminder, at the end of September 2022, Hurricane Ian struck southwestern Florida with 150 mph winds. The slow-moving storm moved across the state and caused substantial fruit drop at the majority of our groves. For fiscal year 2023, we will see lower levels of revenue because we have less fruit available to sell. Based upon our prior experiences with storms of this nature, we anticipate it may take up to two full seasons, or more, for our groves to recover to pre-hurricane production levels. The Early and Mid-Season harvest ended earlier with lower production volume than in the prior year due to the increased rate of fruit drop as a result of Hurricane Ian. We will start the Valencia harvest in mid-February. We maintain crop insurance and are working closely with our insurers and adjusters to determine the amount of insurance recovery we may be entitled to, if any, which is measured at the completion of each harvest.
“Although a small number of our groves were exposed to freezing temperatures in late December 2022 and early January 2023, based upon the limited duration at those freezing temperatures, our freeze protection protocols, and our highly dedicated staff, our groves were able to avoid any meaningful impact from those freezing temperatures.
“The federal government passed into law the Consolidated Appropriations Act in December 2022. As part of that Act, there are funds earmarked for disaster relief; however, the mechanism and funding of Hurricane Ian relief remains unclear, and if available, the extent to which the Company will be eligible. The Company is currently working with Florida Citrus Mutual, the industry trade group, and government agencies on the federal relief programs available under the Act. The Company intends to take advantage of such programs if and when they become available.”
Mr. Kiernan continued, “The Company has completed several sales of ranch land during the first fiscal quarter ended December 31, 2022 and has closed on a sale of another 200 acres of ranch land in January 2023. We continue to engage with interested third parties on certain parcels of the ranch and at prices we continue to believe are competitive.”
Other Corporate Financial Information
General and administrative expense for the three months ended December 31, 2022 was approximately $2.5 million, compared to approximately $2.6 million for the three months ended December 31, 2021. The decrease was primarily due to a reduction in expenses related to the Company-sponsored incentive for employees to obtain the COVID-19 vaccine during the three months ended December 31, 2022 of approximately $0.1 million, as compared to the same period in the prior year. In addition, the Company realized a reduction in stock compensation expense based upon a reduction in restricted stock awarded to certain executives, senior managers and employees and a reduction in other administrative costs. Partially offsetting these decreases was an increase in professional fees.
Other income, net for the three months ended December 31, 2022 and 2021, was approximately $2.0 million and $7.6 million, respectively. The decrease to other income, net, is primarily due to the timing of the gains on sale of real estate, property and equipment and assets held for sale. During the quarter ended December 31, 2022, the Company sold approximately 609 acres, in the aggregate, from the Alico Ranch to several third parties and recognized gains of approximately $3.2 million. By comparison, for the three months ended December 31, 2021, the Company sold, in the aggregate, approximately 1,900 acres from the Alico Ranch to several third parties and recognized gains of approximately $8.4 million relating to the sale of real estate, property and equipment and assets held for sale. In addition, the Company recognized an increase in interest expense of approximately $0.2 million for the three months ended December 31, 2022, as compared to the three months ended December 31, 2021, as a result of an increase in the overall interest rates on its variable rate term debt and WCLC, as well as additional borrowings under the WCLC as of December 31, 2022, as compared to December 31, 2021.
Dividend
On January 13, 2023 the Company paid a first quarter cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of December 30, 2022.
Balance Sheet and Liquidity
The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:
- The Company’s working capital was approximately $27.3 million at December 31, 2022, representing a 3.67 to 1.00 ratio.
- The Company maintains a solid debt-to-equity ratio. At December 31, 2022, September 30, 2022, and September 30, 2021, the ratios were 0.51 to 1.00, 0.45 to 1.00, and 0.50 to 1.00, respectively.
As of December 31, 2022 and 2021, the Company had long-term debt, including lines of credit, net of cash and cash equivalents, of approximately $124.7 million and $134.5 million, respectively. The Company, as of December 31, 2022, had approximately $75.7 million of availability under its two lines of credit.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These forward-looking statements are based on Alico’s current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “plans,” “expect,” “may,” “anticipate,” “intend,” “should be,” “will,” “is likely to,” “believes,” and similar expressions referring to future periods.
Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulation and rules, including tax laws and tax rates; climate change; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their by-products, and that may result in impairment expense such as the freeze in the last week of January 2022 or Hurricane Ian in the last week of September 2022; increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; market pricing of citrus; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy, including, but not limited to, changes due in part to the deadly conflict in Ukraine; changes in interest rates; availability of refinancing; availability of financing for land development activities and other growth and corporate opportunities; onetime events; acquisitions and divestitures; ability to make strategic acquisitions or divestitures; our ability to maintain effective internal control over financial reporting; the impact of, and costs related to, any investigations, legal or administrative actions that may result from the restatements described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022; ability to redeploy proceeds from divestitures; ability to consummate selected land acquisitions; ability to take advantage of tax deferral options; ability to retain executive officers and to replace departed executive officers; ability to replace the Company’s primary third party grove management customer and even further expand the third party grove management program; ability to complete and implement land use planning activities, including adding to entitlements applicable to owned real estate; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in land values, agricultural or otherwise; the extent to which real estate value appreciates; impact of the COVID-19 outbreak and coronavirus pandemic on our agriculture operations, including without limitation demand for product, supply chain, health and availability of our labor force, the labor force of contractors we engage, and the labor force of our competitors; other risks related to the duration and severity of the COVID-19 outbreak and coronavirus pandemic and its impact on Alico’s business; the impact of the COVID-19 outbreak and coronavirus pandemic on the U.S. and global economies and financial markets, including without limitation related legislative and regulatory initiatives; availability of and access to governmental loans and incentives; availability of and access to governmental relief programs, particularly those that can be accessed with respect to the impact of Hurricane Ian; settlement of insurance claims; any reduction in the public float resulting from repurchases of common stock by Alico; changes in equity awards to employees; whether the Company's dividend policy, including its recent decreased dividend amounts, is continued or whether the Company’s performance supports the ability to return to the previously increased level of dividends; expressed desire of certain of our stockholders to liquidate their shareholdings by virtue of past market sales of common stock, by sales of common stock or by way of future transactions designed to consummate such expressed desire; political changes and economic crises; ability to implement ESG initiatives; competitive actions by other companies; increased competition from international companies; changes in environmental regulations and their impact on farming practices; the land ownership policies of governments; changes in government farm programs and policies and international reaction to such programs; changes in pricing calculations with our customers; fluctuations in the value of the U.S. dollar, interest rates, inflation and deflation rates; length of terms of contracts with customers; impact of concentration of sales to one customer; and changes in and effects of crop insurance programs, global trade agreements, trade restrictions and tariffs; and soil conditions, harvest yields, prices for commodities, and crop production expenses. Other risks and uncertainties include those that are described in Alico’s SEC filings, including those Risk Factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, as such factors may be updated from time to time in subsequent filings with the SEC, which are available on the SEC’s website at http://www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and Alico undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
Investor Contact:
Investor Relations
(239) 226-2060
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
ALICO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, | September 30, | |||||||
2022 | 2022 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 269 | $ | 865 | ||||
Accounts receivable, net | 4,369 | 324 | ||||||
Inventories | 28,998 | 27,682 | ||||||
Income tax receivable | 2,199 | 1,116 | ||||||
Assets held for sale | 174 | 205 | ||||||
Prepaid expenses and other current assets | 1,546 | 1,424 | ||||||
Total current assets | 37,555 | 31,616 | ||||||
Property and equipment, net | 370,095 | 372,479 | ||||||
Goodwill | 2,246 | 2,246 | ||||||
Other non-current assets | 3,094 | 2,914 | ||||||
Total assets | $ | 412,990 | $ | 409,255 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,951 | $ | 3,366 | ||||
Accrued liabilities | 3,306 | 9,062 | ||||||
Long-term debt, current portion | 3,035 | 3,035 | ||||||
Other current liabilities | 933 | 1,062 | ||||||
Total current liabilities | 10,225 | 16,525 | ||||||
Long-term debt: | ||||||||
Principal amount, net of current portion | 102,902 | 103,661 | ||||||
Less: deferred financing costs, net | (716 | ) | (748 | ) | ||||
Long-term debt less current portion and deferred financing costs, net | 102,186 | 102,913 | ||||||
Lines of credit | 19,045 | 4,928 | ||||||
Deferred income tax liabilities, net | 35,589 | 35,589 | ||||||
Other liabilities | 341 | 435 | ||||||
Total liabilities | 167,386 | 160,390 | ||||||
Commitments and Contingencies (Note 12) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,592,937 and 7,586,995 shares outstanding at December 31, 2022 and September 30, 2022, respectively | 8,416 | 8,416 | ||||||
Additional paid in capital | 19,943 | 19,784 | ||||||
Treasury stock, at cost, 823,208 and 829,150 shares held at December 31, 2022 and September 30, 2022, respectively | (27,802 | ) | (27,948 | ) | ||||
Retained earnings | 239,960 | 243,490 | ||||||
Total Alico stockholders' equity | 240,517 | 243,742 | ||||||
Noncontrolling interest | 5,087 | 5,123 | ||||||
Total stockholders' equity | 245,604 | 248,865 | ||||||
Total liabilities and stockholders' equity | $ | 412,990 | $ | 409,255 |
ALICO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended December 31, |
||||||||
2022 | 2021 | |||||||
Operating revenues: | ||||||||
Alico Citrus | $ | 10,268 | $ | 14,748 | ||||
Land Management and Other Operations | 320 | 589 | ||||||
Total operating revenues | 10,588 | 15,337 | ||||||
Operating expenses: | ||||||||
Alico Citrus | 14,295 | 13,386 | ||||||
Land Management and Other Operations | 94 | 140 | ||||||
Total operating expenses | 14,389 | 13,526 | ||||||
Gross (loss) profit | (3,801 | ) | 1,811 | |||||
General and administrative expenses | 2,509 | 2,584 | ||||||
Loss from operations | (6,310 | ) | (773 | ) | ||||
Other income (expense), net: | ||||||||
Interest expense | (1,148 | ) | (901 | ) | ||||
Gain on sale of real estate, property and equipment and assets held for sale | 3,189 | 8,445 | ||||||
Other income, net | — | 9 | ||||||
Total other income, net | 2,041 | 7,553 | ||||||
(Loss) income before income taxes | (4,269 | ) | 6,780 | |||||
Income tax benefit | (1,083 | ) | (3,300 | ) | ||||
Net (loss) income | (3,186 | ) | 10,080 | |||||
Net loss attributable to noncontrolling interests | 36 | 51 | ||||||
Net (loss) income attributable to Alico, Inc. common stockholders | $ | (3,150 | ) | $ | 10,131 | |||
Per share information attributable to Alico, Inc. common stockholders: | ||||||||
Earnings per common share: | ||||||||
Basic | $ | (0.41 | ) | $ | 1.34 | |||
Diluted | $ | (0.41 | ) | $ | 1.34 | |||
Weighted-average number of common shares outstanding: | ||||||||
Basic | 7,593 | 7,535 | ||||||
Diluted | 7,593 | 7,542 | ||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.50 |
ALICO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended December 31, |
||||||||
2022 | 2021 | |||||||
Net cash used in operating activities: | ||||||||
Net (loss) income | $ | (3,186 | ) | $ | 10,080 | |||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
Depreciation, depletion and amortization | 3,950 | 3,836 | ||||||
Debt issue costs expense | 36 | 43 | ||||||
Gain on sale of real estate, property and equipment and assets held for sale | (3,189 | ) | (8,445 | ) | ||||
Loss on disposal of long-lived assets | 1,915 | 137 | ||||||
Deferred income tax benefit | — | (4,876 | ) | |||||
Stock-based compensation expense | 305 | 375 | ||||||
Other | 8 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (4,045 | ) | (2,796 | ) | ||||
Inventories | (1,316 | ) | (2,573 | ) | ||||
Prepaid expenses | (122 | ) | (418 | ) | ||||
Income tax receivable | (1,083 | ) | 1,576 | |||||
Other assets | 108 | 117 | ||||||
Accounts payable and accrued liabilities | (2,822 | ) | (6,328 | ) | ||||
Other liabilities | (224 | ) | (336 | ) | ||||
Net cash used in operating activities | (9,665 | ) | (9,608 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (3,453 | ) | (4,193 | ) | ||||
Acquisition of citrus groves | (29 | ) | (136 | ) | ||||
Net proceeds from sale of real estate, property and equipment and assets held for sale | 3,287 | 8,604 | ||||||
Change in deposits on purchase of citrus trees | (301 | ) | (196 | ) | ||||
Net cash (used in) provided by investing activities | (496 | ) | 4,079 | |||||
Cash flows from financing activities: | ||||||||
Repayments on revolving lines of credit | (8,902 | ) | (16,319 | ) | ||||
Borrowings on revolving lines of credit | 23,019 | 25,696 | ||||||
Principal payments on term loans | (759 | ) | (1,072 | ) | ||||
Exercise of stock options | — | 170 | ||||||
Dividends paid | (3,793 | ) | (3,763 | ) | ||||
Net cash provided by financing activities | 9,565 | 4,712 | ||||||
Net decrease in cash and cash equivalents and restricted cash | (596 | ) | (817 | ) | ||||
Cash and cash equivalents and restricted cash at beginning of the period | 865 | 886 | ||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 269 | $ | 69 |
Non-GAAP Financial Measures
Adjusted EBITDA | ||||||||
(in thousands) | ||||||||
Three Months Ended December 31, | ||||||||
2022 | 2021 | |||||||
Net (loss) income attributable to common stockholders | $ | (3,150 | ) | $ | 10,131 | |||
Interest expense | 1,148 | 901 | ||||||
Income tax benefit | (1,083 | ) | (3,300 | ) | ||||
Depreciation, depletion, and amortization | 3,950 | 3,836 | ||||||
EBITDA | 865 | 11,568 | ||||||
Adjustments for non-recurring items: | ||||||||
Employee stock compensation expense (1) | 149 | 196 | ||||||
Federal relief proceeds - Hurricane Irma | (1,266 | ) | (948 | ) | ||||
Gain on sale of real estate, property and equipment and assets held for sale | (3,189 | ) | (8,445 | ) | ||||
Adjusted EBITDA | $ | (3,441 | ) | $ | 2,371 | |||
(1) Includes stock compensation expense for current executives, senior management and other employees. |
Adjusted Loss Per Diluted Common Share | ||||||||
(in thousands) | ||||||||
Three Months Ended December 31, | ||||||||
2022 | 2021 | |||||||
Net (loss) income attributable to common stockholders | $ | (3,150 | ) | $ | 10,131 | |||
Adjustments for non-recurring items: | ||||||||
Employee stock compensation expense (1) | 149 | 196 | ||||||
Federal relief proceeds - Hurricane Irma | (1,266 | ) | (948 | ) | ||||
Gain on sale of real estate, property and equipment and assets held for sale | (3,189 | ) | (8,445 | ) | ||||
Tax impact (2) | 1,107 | (2,735 | ) | |||||
Adjusted net loss attributable to common stockholders | $ | (6,349 | ) | $ | (1,801 | ) | ||
Diluted common shares | 7,593 | 7,542 | ||||||
Adjusted net loss per diluted common share | $ | (0.84 | ) | $ | (0.24 | ) | ||
(1) Includes stock compensation expense for current executives, senior management and other employees. | ||||||||
(2) Benefit in fiscal quarter ended December 31, 2021 is the result of a charitable contribution related to a sales transaction with the State of Florida. |
In addition to the GAAP financial measures, Alico utilizes the EBITDA, Adjusted EBITDA, and Adjusted Net (Loss) Income per Diluted Common Share which are non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA and Adjusted Net (Loss) Income per Diluted Common Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Adjusted Net (Loss) Income per Diluted Common Share is defined as net income adjusted for non-recurring transactions divided by diluted common shares.
Source: Alico, Inc. ]]>
FORT MYERS, Fla., Jan. 23, 2023 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announced that the Company will release financial results for the first quarter ended December 31, 2022, on Monday, February 6, before the market open.
The Company will host a conference call to discuss its financial results on February 6, 2023, at 8:30 am Eastern Time. Interested parties may join the conference call by dialing 1-877-407-0792 in the United States and 1-201-689-8263 from outside of the United States. The participant identification to join the conference call is 13735632.
A telephone replay will be available on February 6, 2023, approximately three hours after the call concludes, and will be available through February 20, 2023. Listeners in the United States may dial 1-844-512-2921 and international listeners may dial 1-412-317-6671. The passcode for the playback is 13735632.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Alico Land Management and Other Operations, which include environmental services, land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Investor Contact:
Investor Relations
239-226-2060
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
Source: Alico, Inc. ]]>
The Company released its inaugural Sustainability Report last year, which documents the actions Alico undertook prior to and during 2021. Alico publicly committed to improve transparency regarding its sustainability actions and activities, and its Director of Sustainability and her team have made improvements which positively impact the Company’s culture, industry, operations, and the environment.
John Kiernan, President and Chief Executive Officer, commented, “I’m pleased to introduce Alico’s 2022 Sustainability Report. Although enthusiasm for ESG seems to have waned within the investment community over the past year while every company struggles to compete in the difficult global economic environment, Alico continues to focus on being the best steward for our land, as we have done for approximately 124 years, and a responsible corporate citizen while maintaining our leadership role within the agriculture industry.
“2022 saw Alico continue to be challenged by weather from a freeze event in January and a hurricane in September, but our Company remains focused on delivering the highest quality citrus fruit possible to Florida orange juice processors for years to come.
“Consistent with the commitments we made in our inaugural Sustainability Report in 2021, over the past year Alico has delivered on our Environmental, Social, and Governance promises. Some of our notable accomplishments include:
- Beginning trials for slow-release fertilizer, which have the potential to significantly reduce our carbon footprint over the long-term.
- Providing human rights training to all employees, reinforcing our commitment to labor and human rights in our operations and across our value chain.
- Launching the Alico Hispanic Council Committee, a business resource group dedicated to supporting our Hispanic and Latinx employees.
- Reinstituting (after a two-year COVID-19 delay) the requirement for all harvesting crew leaders to complete a Farm Management Certification Program, which provides an extra layer of assurance on food safety and workplace safety practices.
- Continuing our membership in the United Nations Global Compact (UNGC) and aligning our sustainability efforts with the United Nations Sustainable Development Goals (UNSDGs) for Zero Hunger, Decent Work and Economic Growth, and Life on Land.
“Our goal with this report is to make it easier for our stakeholders—investors, employees, customers, suppliers, industry groups and academic institutions—to identify where our interests align and explore opportunities for partnership and collaboration.”
Mr. Kiernan concluded, “We look forward to keeping you informed about our continued progress on these important issues.”
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Alico Land Management and Other Operations, which include environmental services, land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
ESG Contact:
Director of Sustainability
alicoesg@alicoinc.com
Investor Contact:
Investor Relations
InvestorRelations@alicoinc.com
Source: Alico, Inc. ]]>
- Company reports net income attributable to Alico, Inc. common stockholders of $12.5 million and EBITDA of $32.1 million for the fiscal year 2022. After adjusting for certain non-recurring items, Company reports adjusted net loss attributable to Alico, Inc. common stockholders of $1.6 million and Adjusted EBITDA of $13.4 million.
- Company’s fiscal year 2022 financial results are below the most recent net income and EBITDA guidance, primarily due to the approximately $23.0 million of inventory and casualty losses incurred as a result of the impact of Hurricane Ian; however, adjusting out for the impact of Hurricane Ian, such financial results exceeded the most recent Adjusted Net Loss and Adjusted EBITDA guidance.
- During fiscal year 2022, the Company sold approximately 9,400 acres of the Alico Ranch to several third parties for approximately $41.9 million and used portions of the net cash proceeds to return approximately $15 million to shareholders through common dividends, prepay certain debt obligations, and support operations.
- Company maintains a strong balance sheet with a working capital ratio of 1.91 to 1.00 and has reduced its debt-to-equity ratio to 0.45 to 1.00 for the fiscal year ended 2022 from 0.50 to 1.00 for the fiscal year ended 2021.
- Alico will not at this time be providing investors with financial guidance for the 2023 fiscal year due to uncertainty related to Hurricane Ian.
Results of Operations
For the fiscal year ended September 30, 2022, the Company reported net income attributable to Alico common stockholders of approximately $12.5 million, compared to net income attributable to Alico common stockholders of approximately $34.9 million for the fiscal year ended September 30, 2021. The fiscal year ended 2022 results were negatively impacted by approximately $23.0 million of one-time items for casualty losses and inventory adjustments related to the impact of Hurricane Ian. As a consequence of these one-time adjustments, the net income for the fiscal year ended September 30, 2022 was below the Company’s most recent net income guidance of $30.7 to $33.3 million. For the fiscal year ended September 30, 2022, the Company had earnings of $1.65 per diluted common share, compared to earnings of $4.64 per diluted common share for the fiscal year ended September 30, 2021. The 2022 fiscal year decrease in net income attributable to Alico common stockholders is primarily due to the one-time adjustments recorded as a result of the impact of Hurricane Ian and a reduction in both box production and average pound solids per box of citrus fruit for the fiscal year ended September 30, 2022, as compared to the fiscal year ended September 30, 2021. Partially offsetting this decrease was (i) higher gains on sales of real estate, property and equipment and assets held for sale recorded in the fiscal year ended September 30, 2022, as compared to the same period in fiscal year 2021 and (ii) an increase in the market price per pound solids for citrus fruit in the 2021/2022 harvest season, as compared to the 2020/2021 harvest season, because of favorable industry supply dynamics.
For the fiscal year ended September 30, 2022, the Company’s EBITDA of $32.1 million was below the Company’s most recent EBITDA guidance of $52.6 million to $56.6 million, primarily due to the approximate $23.0 million of the one-time items for casualty losses and inventory adjustments related to the impact of Hurricane Ian.
When both periods are adjusted for certain non-recurring items, including primarily the casualty losses and inventory adjustments related to the impact of Hurricane Ian and gains on sale of real estate, the Company had an adjusted net loss of $0.21 per diluted common share for the fiscal year ended September 30, 2022, compared to an adjusted net income of $0.62 per diluted common share for the fiscal year ended September 30, 2021. Adjusted EBITDA for the fiscal years ended September 30, 2022, and 2021 was $13.4 million and $25.3 million, respectively, representing a 47.0% decrease.
These financial results also reflect the seasonal nature of the Company’s business. The majority of the Company’s citrus crop is harvested in the second and third quarters of the fiscal year; consequently, most of the Company's gross profit and cash flows from operating activities are typically recognized in those quarters and the Company’s working capital requirements are typically greater in the first and fourth quarters of the fiscal year.
The Company reported the following financial results:
Three Months Ended September 30, | Fiscal Year Ended September 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||
Net (loss) income attributable to Alico, Inc. common stockholders | $ | (21,080 | ) | $ | (972 | ) | $ | (20,108 | ) | NM | $ | 12,459 | $ | 34,859 | $ | (22,400 | ) | (64.3 | )% | |||||||||||||
EBITDA (1) | $ | (19,840 | ) | $ | 3,487 | $ | (23,327 | ) | NM | $ | 32,081 | $ | 65,535 | $ | (33,454 | ) | (51.0 | )% | ||||||||||||||
Adjusted EBITDA (1) | $ | 2,983 | $ | 1,324 | $ | 1,659 | 125.3 | % | $ | 13,406 | $ | 25,267 | $ | (11,861 | ) | (46.9 | )% | |||||||||||||||
(Loss) earnings per diluted common share | $ | (2.78 | ) | $ | (0.12 | ) | $ | (2.66 | ) | NM | $ | 1.65 | $ | 4.64 | $ | (2.99 | ) | (64.4 | )% | |||||||||||||
Net cash (used in) provided by operating activities | $ | (4,269 | ) | $ | (17,104 | ) | $ | 12,835 | (75.0 | )% | $ | 6,523 | $ | 16,504 | $ | (9,981 | ) | (60.5 | )% |
(1) See “Non-GAAP Financial Measures” at the end of this earnings release for details regarding these measures, including reconciliations of the Non-GAAP Financial Measures presented in this release to their most directly comparable GAAP measures.
NM - Not Meaningful
Alico Citrus Division Results
Citrus production for the fiscal years ended September 30, 2022 and 2021 is summarized in the following table.
(in millions, except per box and per pound solids data) | ||||||||||||||||
Fiscal Year Ended | ||||||||||||||||
September 30, | Change | |||||||||||||||
2022 | 2021 | Unit | % | |||||||||||||
Boxes Harvested: | ||||||||||||||||
Early and Mid-Season | 2,175 | 2,519 | (344 | ) | (13.7 | )% | ||||||||||
Valencias | 3,274 | 3,779 | (505 | ) | (13.4 | )% | ||||||||||
Total Processed | 5,449 | 6,298 | (849 | ) | (13.5 | )% | ||||||||||
Fresh Fruit | 91 | 61 | 30 | 49.2 | % | |||||||||||
Total | 5,540 | 6,359 | (819 | ) | (12.9 | )% | ||||||||||
Pound Solids Produced: | ||||||||||||||||
Early and Mid-Season | 11,034 | 13,598 | (2,564 | ) | (18.9 | )% | ||||||||||
Valencias | 17,756 | 22,042 | (4,286 | ) | (19.4 | )% | ||||||||||
Total | 28,790 | 35,640 | (6,850 | ) | (19.2 | )% | ||||||||||
Pound Solids per Box: | ||||||||||||||||
Early and Mid-Season | 5.07 | 5.40 | (0.33 | ) | (6.1 | )% | ||||||||||
Valencias | 5.42 | 5.83 | (0.41 | ) | (7.0 | )% | ||||||||||
Price per Pound Solids: | ||||||||||||||||
Early and Mid-Season | $ | 2.56 | $ | 2.32 | $ | 0.24 | 10.3 | % | ||||||||
Valencias | $ | 2.68 | $ | 2.54 | $ | 0.14 | 5.5 | % |
For the fiscal year ended September 30, 2022, Alico Citrus harvested approximately 5.5 million boxes of fruit, a decrease of 12.9% from the prior fiscal year. The decrease was principally attributable to greater fruit drop and the freeze event which occurred in January 2022. However, the Company’s decline in harvested production was substantially lower than the USDA citrus report for the industry, in which the USDA reported a 22.5% decline in the total orange crop for the 2021/2022 harvest season, as compared to the prior year. As anticipated, the Company saw its average realized/blended price per pound solids rise from $2.45 in the prior fiscal year to $2.63 in fiscal year 2022. The Company anticipates market prices in the 2022/2023 harvest season to be consistent or slightly above this past season’s market prices largely due to continued consumption of not-from-concentrate orange juice by retail consumers, low levels of inventory stocks at the juice processors and a tighter global supply for oranges.
Land Management and Other Operations Division Results
Land Management and Other Operations includes lease income from grazing rights leases, hunting leases, a farm lease, a lease to a third party of an aggregate mine, leases of oil extraction rights to third parties and other miscellaneous income.
Income from operations for the Land Management and Other Operations Division decreased for the fiscal year ended September 30, 2022 by $0.2 million, compared to the prior fiscal year. This decrease was primarily driven by a reduction in the leased acreage relating to grazing and hunting leases, due to the sale of certain acres, which were previously included under these lease arrangements, thus resulting in fewer acres now being leased under these grazing and hunting leases.
Management Comment
John Kiernan, President and Chief Executive Officer, commented, “2022 was a challenging year for Alico. Two weather events had a meaningful impact on our Company and the Florida citrus industry. As previously discussed, in January, the freeze increased fruit drop for our Valencia crop at the beginning of our harvesting season, and we made the decision to accelerate the harvest of the remaining fruit that did not have time to mature to optimal quality standards.
“At the end of September, Hurricane Ian struck southwestern Florida with 150 mph winds. The slow-moving storm moved across the state, causing substantial fruit drop at the majority of our groves. Fortunately, tree damage was largely limited to only one property. This lost fruit impacted our fiscal year 2022 financial results through an aggregate of approximately $23.0 million of one-time items for casualty losses and inventory adjustments. Fiscal year 2023 will see lower levels of revenue because we have less fruit available for sale. Based upon our prior experience with storms of this nature, we anticipate it may take up to two seasons or more for our groves to recover to pre-hurricane production levels. After Hurricane Irma struck in 2017, our groves recovered the following harvest season. We maintain crop insurance and are working closely with our insurers and adjusters to evaluate and determine the amount of insurance recovery we may be entitled to, if any.
“As it has been for approximately 124 years, Alico remains focused on carrying on its business for the long term. In fact, we believe that we are the only citrus grower in the state of Florida that closed on a small acquisition for additional citrus acres immediately after Hurricane Ian in October. Alico has planted approximately 1.9 million new trees since 2017, which has materially increased tree density in our existing and recently purchased groves. Our Florida-based workforce remains stable. Sales of parcels of the Alico Ranch continue to be negotiated and closed at prices we believe to be attractive.
“The Company believes that actions taken in recent years make our balance sheet one of our greatest strengths. Our long-term debt levels have been significantly reduced through prepayments and most of our term debt maturing in 2029 is now non-amortizing. Alico negotiated an extension of its $70 million working capital line of credit with Rabo Agrifinance, Inc. until November 1, 2025. Our $25 million revolving line of credit with MetLife extends until November 2029. We believe that these credit facilities provide Alico with ample liquidity while the Company manages through the impact of the recent weather events. Senior managers of the Company have been working closely with Florida Citrus Mutual, the industry trade group, and government agencies, to seek federal relief to aid our recovery from the effects of Hurricane Ian.
“We believe the investments that Alico has made over the past several years have created what we believe to be the most productive citrus groves in Florida. We will continue to blend a conventional agriculture investment with the ability to optimize the returns on our real assets. We are continuing to work with land-use planning professionals to develop and implement this strategy over the next several years, which we expect to help generate greater returns for our shareholders through active land management.
“Alico has paid common dividends to shareholders consistently since it became publicly held more than 6 decades ago. The rate of increased dividend payments since 2019 has been a source of pride as ranch sales proceeds and operations enabled significant amounts of capital to be returned to shareholders. However, taking into account the impact of the recent storm, Alico’s Board of Directors unanimously voted to reduce its next quarterly common dividend to $0.05 per share. As the Company recovers from the effects of the recent hurricane, future capital allocation decisions will be evaluated in an effort to maximize returns to shareholders, which may include but are not limited to pursuing opportunities to acquire additional citrus acreage at attractive prices, repurchasing common shares, making other acquisitions, or even considering special dividends as asset sales, such as additional portions of the Alico Ranch, are realized.”
Other Corporate Financial Information
General and administrative expenses for the fiscal year ended September 30, 2022 were approximately $10.1 million, compared to approximately $9.5 million for the fiscal year ended September 30, 2021. The increase was attributable in large part to increases relating to (i) an increase in legal expense in the twelve months ended September 30, 2022, when compared to the twelve months ended September 30, 2021, with the fiscal year 2021 legal expense having been lower because of a reimbursement of approximately $0.7 million from insurers for a corporate legal matter from 2018 that was received during the twelve months ended September 30, 2021, (ii) a net increase in stock compensation expense of approximately $0.2 million relating to restricted stock awarded to certain executives, senior managers and employees, and (iii) an increase of approximately $0.1 million relating to a company-sponsored incentive for employees to obtain the COVID 19 vaccine. Partially offsetting these increases were reductions relating to (i) a decrease in payroll expenses of approximately $0.3 million primarily relating to the reduction in administrative personnel made during the fiscal year ended September 30, 2021 and during the fiscal year ended September 30, 2022, and (ii) a reduction in Company’s director fees of approximately $0.2 million, relating to a modification of the compensation arrangement for the Board of Directors.
Other income, net, for the fiscal years ended September 30, 2022, and 2021 was approximately $37.8 million and approximately $32.0 million, respectively. The other income, net in both fiscal years was primarily due to the Company recognizing significant gains on sales of real estate, property and equipment and assets held for sale, with the increase being attributable to increases in the amount of such gains. For the fiscal year ended September 30, 2022, the Company recorded gains on sale of real estate, property and equipment and assets held for sale of approximately $41.1 million relating primarily to the sale of approximately 9,400 acres from the Alico Ranch to several third parties. For the fiscal year ended September 30, 2021, the Company recognized gains on sale of real estate, property and equipment and assets held for sale of approximately $35.9 million. Additionally, the increase in other income net was due in part to a decrease in interest expense of approximately $0.7 million for the fiscal year ended September 30, 2022, as compared to the fiscal year ended September 30, 2021, primarily due to the reduction of the Company’s long-term debt from the making of mandatory principal payments and certain prepayments.
Dividend
On October 14, 2022, the Company paid a fourth quarter cash dividend of $0.50 per share on its outstanding common stock to stockholders of record as of September 30, 2022. Additionally, the Company has declared a first quarter fiscal year 2023 cash dividend of $0.05 per share on its outstanding common stock to stockholders of record as of December 30, 2022.
Balance Sheet and Liquidity
The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:
- The Company’s working capital was approximately $15.1 million at September 30, 2022, representing a 1.91 to 1.00 ratio.
- The Company maintains a solid and improving debt-to-equity ratio. At September 30, 2022, September 30, 2021, and September 30, 2020, the ratios were 0.45 to 1.00, 0.50 to 1.00, and 0.67 to 1.00, respectively.
As of September 30, 2022, the Company had long-term debt, including lines of credit, net of cash and cash equivalents, of approximately $110.8 million. On October 27, 2022, the Company extended the maturity date of its working capital line of credit with one of its lenders to November 1, 2025. The Company, as of September 30, 2022, had approximately $89.8 million of availability under its two lines of credit.
Restatement of Historical Balance Sheet Items
During the completion of our annual report on Form 10-K for the fiscal year ending September 30, 2022, the Company identified an error in the calculation of the deferred tax liabilities for the fiscal years 2015 through 2019, resulting in a restatement of balance sheet items as of September 30, 2021 and as of the end of each fiscal quarter previously reported since December 31, 2020. The error had no impact on our consolidated statements of operations or our consolidated statements of cash flows presented in the Form 10-K but resulted in a cumulative reduction in deferred tax liability, and a corresponding cumulative increase in retained earnings, of approximately $2,512,000 on our audited consolidated balance sheet as of September 30, 2021.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These forward-looking statements are based on Alico’s current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “plans,” “expect,” “may,” “anticipate,” “intend,” “should be,” “will,” “is likely to,” “believes,” and similar expressions referring to future periods.
Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance, or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulation and rules, including tax laws and tax rates; climate change; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their by-products, and that may result in impairment expense such as the freeze in the last week of January 2022, or Hurricane Ian, which occurred in the last week of September 2022; increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; market pricing of citrus; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy, including, but not limited to, changes due in part to the deadly conflict in Ukraine; changes in interest rates; availability of refinancing; availability of financing for land development activities and other growth and corporate opportunities; onetime events; acquisitions and divestitures; ability to make strategic acquisitions or divestitures; our ability to maintain effective internal control over financial reporting; the impact of, and costs related to, any investigations, legal or administrative actions that may result from the restatements described in our Annual Report on Form 10-K; ability to redeploy proceeds from divestitures; ability to consummate selected land acquisitions; ability to take advantage of tax deferral options; ability to retain executive officers and to replace departed executive officers; ability to replace the Company’s primary third party grove management customer and even further expand the third party grove management program; ability to complete and implement land use planning activities, including adding to entitlements applicable to owned real estate; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in land values, agricultural or otherwise; the extent to which real estate value appreciates; impact of the COVID-19 outbreak and coronavirus pandemic on our agriculture operations, including without limitation demand for product, supply chain, health and availability of our labor force, the labor force of contractors we engage, and the labor force of our competitors; other risks related to the duration and severity of the COVID-19 outbreak and coronavirus pandemic and its impact on Alico’s business; the impact of the COVID-19 outbreak and coronavirus pandemic on the U.S. and global economies and financial markets, including without limitation related legislative and regulatory initiatives; access to governmental loans and incentives; access to governmental relief programs; settlement of insurance claims; any reduction in the public float resulting from repurchases of common stock by Alico; changes in equity awards to employees; whether the Company's dividend policy, including its recent increased dividend amounts, is continued; expressed desire of certain of our stockholders to liquidate their shareholdings by virtue of past market sales of common stock, by sales of common stock or by way of future transactions designed to consummate such expressed desire; political changes and economic crises; ability to implement ESG initiatives; competitive actions by other companies; increased competition from international companies; changes in environmental regulations and their impact on farming practices; the land ownership policies of governments; changes in government farm programs and policies and international reaction to such programs; changes in pricing calculations with our customers; fluctuations in the value of the U.S. dollar, interest rates, inflation and deflation rates; length of terms of contracts with customers; impact of concentration of sales to one customer; changes in and effects of crop insurance programs, global trade agreements, trade restrictions and tariffs; soil conditions, harvest yields, prices for commodities, and crop production expenses. Other risks and uncertainties include those that are described in Alico’s SEC filings, including those Risk Factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, as such factors may be updated from time to time in subsequent filings with the SEC, which are available on the SEC’s website at http://www.sec.gov. The forward-looking statements included in this press release are made only as of the date of this press release, and Alico undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
This press release also contains financial projections that are necessarily based upon a variety of estimates and assumptions which may not be realized and are inherently subject, in addition to the risks identified in the forward-looking statement disclaimer, to business, economic, competitive, industry, regulatory, market and financial uncertainties, many of which are beyond the Company’s control. There can be no assurance that the assumptions made in preparing the financial projections will prove accurate. Accordingly, actual results may differ materially from the financial projections.
Investor Contact:
Investor Relations
(646) 277-1254
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
ALICO, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
September 30, | ||||||||
2022 | 2021 | |||||||
(Restated) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 865 | $ | 886 | ||||
Accounts receivable, net | 324 | 6,105 | ||||||
Inventories | 27,682 | 43,377 | ||||||
Income tax receivable | 1,116 | 3,233 | ||||||
Assets held for sale | 205 | 160 | ||||||
Prepaid expenses and other current assets | 1,424 | 1,152 | ||||||
Total current assets | 31,616 | 54,913 | ||||||
Property and equipment, net | 372,479 | 373,231 | ||||||
Goodwill | 2,246 | 2,246 | ||||||
Other non-current assets | 2,914 | 2,827 | ||||||
Total assets | $ | 409,255 | $ | 433,217 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,366 | $ | 7,274 | ||||
Accrued liabilities | 9,062 | 9,872 | ||||||
Long-term debt, current portion | 3,035 | 4,285 | ||||||
Other current liabilities | 1,062 | 875 | ||||||
Total current liabilities | 16,525 | 22,306 | ||||||
Long-term debt: | ||||||||
Principal amount, net of current portion | 103,661 | 122,009 | ||||||
Less: deferred financing costs, net | (748 | ) | (986 | ) | ||||
Long-term debt less current portion and deferred financing costs, net | 102,913 | 121,023 | ||||||
Lines of credit | 4,928 | — | ||||||
Deferred income tax liabilities, net | 35,589 | 39,465 | ||||||
Other liabilities | 435 | 306 | ||||||
Total liabilities | 160,390 | 183,100 | ||||||
Commitments and Contingencies (Note 16) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, no par value, 1,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $1.00 par value, 15,000,000 shares authorized; 8,416,145 shares issued and 7,586,995 and 7,562,004 shares outstanding at September 30, 2022 and September 30, 2021, respectively | 8,416 | 8,416 | ||||||
Additional paid in capital | 19,784 | 19,989 | ||||||
Treasury stock, at cost, 829,150 and 890,141 shares held at September 30, 2022 and September 30, 2021, respectively | (27,948 | ) | (29,853 | ) | ||||
Retained earnings | 243,490 | 246,163 | ||||||
Total Alico stockholders’ equity | 243,742 | 244,715 | ||||||
Noncontrolling interest | 5,123 | 5,402 | ||||||
Total stockholders’ equity | 248,865 | 250,117 | ||||||
Total liabilities and stockholders’ equity | $ | 409,255 | $ | 433,217 |
ALICO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Fiscal Year Ended September 30, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Operating revenues: | ||||||||||||
Alico Citrus | $ | 89,681 | $ | 105,796 | $ | 89,369 | ||||||
Land Management and Other Operations | 2,266 | 2,768 | 3,138 | |||||||||
Total operating revenues | 91,947 | 108,564 | 92,507 | |||||||||
Operating expenses: | ||||||||||||
Alico Citrus | 106,192 | 83,893 | 72,281 | |||||||||
Land Management and Other Operations | 520 | 778 | 2,307 | |||||||||
Total operating expenses | 106,712 | 84,671 | 74,588 | |||||||||
Gross (loss) profit | (14,765 | ) | 23,893 | 17,919 | ||||||||
General and administrative expenses | 10,079 | 9,453 | 10,998 | |||||||||
(Loss) income from operations | (24,844 | ) | 14,440 | 6,921 | ||||||||
Other income (expense): | ||||||||||||
Investment and interest income, net | 21 | 23 | 98 | |||||||||
Interest expense | (3,324 | ) | (3,987 | ) | (5,981 | ) | ||||||
Gains on sale of real estate, property and equipment and assets held for sale | 41,102 | 35,898 | 30,424 | |||||||||
Other income (expense), net | — | 13 | (85 | ) | ||||||||
Total other income, net | 37,799 | 31,947 | 24,456 | |||||||||
Income before income taxes | 12,955 | 46,387 | 31,377 | |||||||||
Income tax provision | 1,069 | 11,567 | 7,663 | |||||||||
Net income | 11,886 | 34,820 | 23,714 | |||||||||
Net loss (income) attributable to noncontrolling interests | 573 | 39 | (52 | ) | ||||||||
Net income attributable to Alico, Inc. common stockholders | $ | 12,459 | $ | 34,859 | $ | 23,662 | ||||||
Per share information attributable to Alico, Inc. common stockholders: | ||||||||||||
Earnings per common share: | ||||||||||||
Basic | $ | 1.65 | $ | 4.64 | $ | 3.16 | ||||||
Diluted | $ | 1.65 | $ | 4.64 | $ | 3.16 | ||||||
Weighted-average number of common shares outstanding: | ||||||||||||
Basic | 7,560 | 7,516 | 7,484 | |||||||||
Diluted | 7,568 | 7,519 | 7,496 | |||||||||
Cash dividends declared per common share | $ | 2.00 | $ | 1.36 | $ | 0.36 |
ALICO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Fiscal Year Ended September 30, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Net cash provided by operating activities: | ||||||||||||
Net income | $ | 11,886 | $ | 34,820 | $ | 23,714 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation, depletion and amortization | 15,229 | 15,122 | 14,282 | |||||||||
Debt issue costs expense | 255 | 179 | 238 | |||||||||
Deferred income tax expense | (3,876 | ) | 2,249 | 7,603 | ||||||||
Cash surrender value | 160 | (14 | ) | (10 | ) | |||||||
Deferred retirement (expense) benefit | — | — | (5,226 | ) | ||||||||
Gain on sale of real estate, property and equipment and assets held for sale | (41,102 | ) | (35,898 | ) | (30,424 | ) | ||||||
Inventory net realizable value adjustment | 6,676 | — | — | |||||||||
Casualty loss – tree damage | 1,258 | — | — | |||||||||
Loss on disposal of property and equipment | 3,251 | 2,338 | 1,382 | |||||||||
Inventory casualty loss | 14,900 | — | — | |||||||||
Casualty loss – building | 142 | — | — | |||||||||
Impairment of long-lived assets | — | — | 598 | |||||||||
Impairment of right-of-use-asset | — | — | 87 | |||||||||
Insurance proceeds received for damage to property and equipment | — | (103 | ) | — | ||||||||
Stock-based compensation expense | 1,235 | 1,230 | 1,306 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable | 5,781 | (1,758 | ) | (3,634 | ) | |||||||
Inventories | (5,881 | ) | (2,522 | ) | (712 | ) | ||||||
Prepaid expenses | (271 | ) | (115 | ) | (135 | ) | ||||||
Income tax receivable | 2,117 | (2,452 | ) | (781 | ) | |||||||
Other assets | (450 | ) | 575 | (839 | ) | |||||||
Accounts payable and accrued liabilities | (5,111 | ) | 3,429 | (1,530 | ) | |||||||
Income tax payable | — | — | (5,536 | ) | ||||||||
Other liabilities | 324 | (576 | ) | 666 | ||||||||
Net cash provided by operating activities | 6,523 | 16,504 | 1,049 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (20,731 | ) | (22,258 | ) | (18,785 | ) | ||||||
Purchases of citrus groves | (136 | ) | (18,527 | ) | (2,920 | ) | ||||||
Net proceeds from sale of real estate, property and equipment and assets held for sale | 43,159 | 37,266 | 31,541 | |||||||||
Insurance proceeds received for damage to property and equipment | — | 103 | — | |||||||||
Change in deposits on purchase of citrus trees | 176 | 217 | (458 | ) | ||||||||
Advances on notes receivables, net | — | 371 | 136 | |||||||||
Purchases of mineral rights | — | (453 | ) | — | ||||||||
Other | — | 13 | (25 | ) | ||||||||
Net cash provided by (used in) investing activities | 22,468 | (3,268 | ) | 9,489 | ||||||||
Cash flows from financing activities: | ||||||||||||
Repayments on revolving lines of credit | (52,227 | ) | (50,735 | ) | (114,581 | ) | ||||||
Borrowings on revolving lines of credit | 57,155 | 47,793 | 117,523 | |||||||||
Principal payments on term loans | (19,598 | ) | (21,957 | ) | (15,198 | ) | ||||||
Treasury stock purchases | — | — | (238 | ) | ||||||||
Dividends paid | (15,101 | ) | (7,138 | ) | (2,466 | ) | ||||||
Exercise of stock options | 465 | — | — | |||||||||
Deferred financing costs | — | — | (23 | ) | ||||||||
Capital contribution received from noncontrolling interest | 294 | — | 294 | |||||||||
Net cash used in financing activities | (29,012 | ) | (32,037 | ) | (14,689 | ) | ||||||
Net decrease in cash and cash equivalents and restricted cash | (21 | ) | (18,801 | ) | (4,151 | ) | ||||||
Cash and cash equivalents and restricted cash at beginning of the period | 886 | 19,687 | 23,838 | |||||||||
Cash and cash equivalents and restricted cash at end of the period | $ | 865 | $ | 886 | $ | 19,687 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid for interest, net of amount capitalized | $ | 3,192 | $ | 3,940 | $ | 5,832 | ||||||
Cash paid for income taxes | $ | 3,430 | $ | 11,770 | $ | 6,403 | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||
Dividends declared but unpaid | $ | 3,793 | $ | 3,763 | $ | 674 |
Non-GAAP Financial Measures
Adjusted EBITDA | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net (loss) income attributable to common stockholders | $ | (21,080 | ) | $ | (972 | ) | $ | 12,459 | $ | 34,859 | |||||
Interest expense | 699 | 802 | 3,324 | 3,987 | |||||||||||
Income tax (benefit) provision | (3,212 | ) | (115 | ) | 1,069 | 11,567 | |||||||||
Depreciation, depletion and amortization | 3,753 | 3,772 | 15,229 | 15,122 | |||||||||||
EBITDA | (19,840 | ) | 3,487 | 32,081 | 65,535 | ||||||||||
Adjustments for non-recurring items: | |||||||||||||||
Inventory Casualty Loss - Hurricane Ian | 14,900 | — | 14,900 | — | |||||||||||
Inventory net realizable value adjustment - Hurricane Ian | 6,676 | — | 6,676 | — | |||||||||||
Property Casualty Loss - Hurricane Ian | 1,400 | — | 1,400 | — | |||||||||||
Employee stock compensation expense (1) | 145 | 100 | 574 | 386 | |||||||||||
Corporate advisory fees | — | — | — | 201 | |||||||||||
Insurance reimbursement – corporate matters | — | — | — | (658 | ) | ||||||||||
Federal relief and insurance proceeds - Hurricane Irma | — | — | (1,123 | ) | (4,299 | ) | |||||||||
Gains on sale of real estate, property and equipment and assets held for sale | (298 | ) | (2,263 | ) | (41,102 | ) | (35,898 | ) | |||||||
Adjusted EBITDA | $ | 2,983 | $ | 1,324 | $ | 13,406 | $ | 25,267 | |||||||
(1) Includes stock compensation expense for current and former executives and managers. |
Adjusted Net Income (Loss) Earnings Per Diluted Common Share | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, | Fiscal Year Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net (loss) income attributable to common stockholders | $ | (21,080 | ) | $ | (972 | ) | $ | 12,459 | $ | 34,859 | |||||
Adjustments for non-recurring items: | |||||||||||||||
Inventory Casualty Loss - Hurricane Ian | 14,900 | — | 14,900 | — | |||||||||||
Inventory net realizable value adjustment - Hurricane Ian | 6,676 | — | 6,676 | — | |||||||||||
Property Casualty Loss - Hurricane Ian | 1,400 | — | 1,400 | — | |||||||||||
Employee stock compensation expense (1) | 145 | 100 | 574 | 386 | |||||||||||
Corporate advisory fees | — | — | — | 201 | |||||||||||
Insurance reimbursement – corporate matters | — | — | — | (658 | ) | ||||||||||
Federal relief and insurance proceeds - Hurricane Irma | — | — | (1,123 | ) | (4,299 | ) | |||||||||
Gains on sale of real estate, property and equipment and assets held for sale | (298 | ) | (2,263 | ) | (41,102 | ) | (35,898 | ) | |||||||
Tax impact | (427 | ) | 672 | 4,613 | 10,041 | ||||||||||
Adjusted net income (loss) attributable to common stockholders | $ | 1,316 | $ | (2,463 | ) | $ | (1,603 | ) | $ | 4,632 | |||||
Diluted common shares | 7,587 | 7,539 | 7,568 | 7,519 | |||||||||||
Adjusted net income (loss) per diluted common share | $ | 0.17 | $ | (0.33 | ) | $ | (0.21 | ) | $ | 0.62 | |||||
(1) Includes stock compensation expense for current and former executives and managers. |
In addition to the GAAP financial measures, Alico utilizes the EBITDA, Adjusted EBITDA, and Adjusted Net Income (Loss) per Diluted Common Share which are non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K, to evaluate the performance of its business. Due to significant depreciable assets associated with the nature of our operations and, to a lesser extent, interest costs associated with our capital structure, management believes that EBITDA, Adjusted EBITDA and Adjusted Net Income (Loss) per Diluted Common Share are important measures to evaluate our results of operations between periods on a more comparable basis and to help investors analyze underlying trends in our business, evaluate the performance of our business both on an absolute basis and relative to our peers and the broader market, provide useful information to both management and investors by excluding certain items that may not be indicative of our core operating results and operational strength of our business and help investors evaluate our ability to service our debt. Such measurements are not prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. The non-GAAP information provided is unique to Alico and may not be consistent with methodologies used by other companies. EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, depletion and amortization and adjustments for non-recurring transactions or transactions that are not indicative of our core operating results, such as gains or losses on sales of real estate, property and equipment and assets held for sale. Adjusted Net Income (Loss) per Diluted Common Share is defined as net income adjusted for non-recurring transactions divided by diluted common shares.
Source: Alico, Inc. ]]>
FORT MYERS, Fla., Dec. 12, 2022 (GLOBE NEWSWIRE) -- Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today announced that the Company will release financial results for the fourth quarter and full year ended September 30, 2022, on Tuesday, December 13, after the market close.
The Company will host a conference call to discuss its financial results on December 13, 2022, at 4:30 pm Eastern Time. Interested parties may join the conference call by dialing 1-877-407-0792 in the United States and 1-201-689-8263 from outside of the United States. The participant identification to join the conference call is 13734919.
A telephone replay will be available on December 13, 2022, approximately two hours after the call concludes, and will be available through December 27, 2022. Listeners in the United States may dial 1-844-512-2921 and international listeners may dial 1-412-317-6671. The passcode for the playback is 13734919.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Alico Land Management and Other Operations, which include environmental services, land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Investor Contact:
Investor Relations
(646) 277-1254
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
Source: Alico, Inc. ]]>
The key item that is requiring such additional time involves evaluation of the proper amount of the Company’s Deferred Tax Liability, particularly certain portions of that Deferred Tax Liability arising in prior fiscal years, including those going back to fiscal year 2019 or possibly several years before fiscal year 2019.
Potential adjustments related to this portion of the Deferred Tax Liability, if required, would be a decrease in the Deferred Tax Liability and an increase in Retained Earnings for the prior period or an out of period adjustment increasing Net Income for fiscal year 2022.
Although it remains uncertain as to whether the time needed to complete the evaluation will require an extension of time to file the Company’s Form 10-K for its fiscal year 2022, the Company is optimistic that the evaluation will be completed early enough to be able to file before the applicable filing deadline.
About Alico
Alico, Inc. primarily operates two divisions: Alico Citrus, one of the nation’s largest citrus producers, and Land Management and Other Operations, which include land leasing and related support operations. Learn more about Alico (Nasdaq: “ALCO”) at www.alicoinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These forward-looking statements are based on Alico’s current expectations, estimates and projections about our business based, in part, on assumptions made by our management and can be identified by terms such as “plans,” “expect,” “may,” “anticipate,” “intend,” “should be,” “will be,” “is likely to,” “believes,” and similar expressions referring to future periods.
Alico believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance, or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Alico cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: analysis of and impact resulting from certain procedures related to reporting deferred tax liabilities discussed in this press release, including, but not limited to the potential of adjustments to financial results reported in prior periods; plans to remediate the impact of these matters on the outlook of the Company and any restatement on the Company’s previously issued financial statements for the affected period(s); the discovery of any additional information relevant to the financial statements; any changes in the effects of any restatements on the Company’s financial statements or financial results; higher than expected charges after completing any restatement process; delay in any filings due to the Company’s efforts to complete its audit or any restatement(s) changes in laws, regulation and rules, including tax laws and tax rates; climate change; weather conditions that affect production, transportation, storage, demand, import and export of fresh product and their by-products, and that may result in impairment expense such as the freeze in the last week of January 2022, or Hurricane Ian, which occurred in the last week of September 2022; increased pressure from diseases including citrus greening and citrus canker, as well as insects and other pests; disruption of water supplies or changes in water allocations; market pricing of citrus; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy, including, but not limited to, changes due in part to the deadly conflict in Ukraine; changes in interest rates; availability of refinancing; availability of financing for land development activities and other growth and corporate opportunities; onetime events; acquisitions and divestitures; ability to make strategic acquisitions or divestitures; ability to redeploy proceeds from divestitures; ability to consummate selected land acquisitions; ability to take advantage of tax deferral options; ability to retain executive officers and to replace departed executive officers; ability to replace the Company’s primary third party grove management customer and even further expand the third party grove management program; ability to complete and implement land use planning activities, including adding to entitlements applicable to owned real estate; seasonality; labor disruptions; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; changes in land values, agricultural or otherwise; the extent to which real estate value appreciates; impact of the COVID-19 outbreak and coronavirus pandemic on our agriculture operations, including without limitation demand for product, supply chain, health and availability of our labor force, the labor force of contractors we engage, and the labor force of our competitors; other risks related to the duration and severity of the COVID-19 outbreak and coronavirus pandemic and its impact on Alico’s business; the impact of the COVID-19 outbreak and coronavirus pandemic on the U.S. and global economies and financial markets, including without limitation related legislative and regulatory initiatives; access to governmental loans and incentives; access to governmental relief programs; settlement of insurance claims; any reduction in the public float resulting from repurchases of common stock by Alico; changes in equity awards to employees; whether the Company's dividend policy, including its recent increased dividend amounts, is continued; expressed desire of certain of our stockholders to liquidate their shareholdings by virtue of past market sales of common stock, by sales of common stock or by way of future transactions designed to consummate such expressed desire; political changes and economic crises; ability to implement ESG initiatives; competitive actions by other companies; increased competition from international companies; changes in environmental regulations and their impact on farming practices; the land ownership policies of governments; changes in government farm programs and policies and international reaction to such programs; changes in pricing calculations with our customers; fluctuations in the value of the U.S. dollar, interest rates, inflation and deflation rates; length of terms of contracts with customers; impact of concentration of sales to one customer; changes in and effects of crop insurance programs, global trade agreements, trade restrictions and tariffs; soil conditions, harvest yields, prices for commodities, and crop production expenses. Other risks and uncertainties include those that are described in Alico’s SEC filings, including those Risk Factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021, and our Quarterly Reports on Form 10-Q, which are available on the SEC’s website at http://www.sec.gov. Alico undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
Investor Contact:
Investor Relations
(646) 277-1254
InvestorRelations@alicoinc.com
Perry Del Vecchio
Chief Financial Officer
(239) 226-2000
pdelvecchio@alicoinc.com
Source: Alico, Inc. ]]>