{"id":812347,"date":"2025-02-12T16:29:22","date_gmt":"2025-02-12T21:29:22","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/alico-inc-announces-financial-results-for-the-first-quarter-ended-december-31-2024\/"},"modified":"2025-02-12T16:29:22","modified_gmt":"2025-02-12T21:29:22","slug":"alico-inc-announces-financial-results-for-the-first-quarter-ended-december-31-2024","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/alico-inc-announces-financial-results-for-the-first-quarter-ended-december-31-2024\/","title":{"rendered":"Alico, Inc. Announces Financial Results for the First Quarter Ended December 31, 2024"},"content":{"rendered":"
\n

\n Land Management and Other Operations Revenue Increased 45% Compared to Prior Year<\/em>\n <\/p>\n

\n Robust Liquidity Position with $73.5 million in Available Credit Facilities and No Significant Debt Maturities Until 2029<\/em>\n <\/p>\n

\n Company Expects to Realize Approximately $20 Million in Land Sales in Fiscal Year 2025<\/em>\n <\/p>\n

\n Company Executing Strategic Transformation to Become Diversified Land Company; Concludes Capital Investment on Citrus Operations After Current Crop is Harvested in 2025 <\/em>\n <\/p>\n

FORT MYERS, Fla., Feb. 12, 2025 (GLOBE NEWSWIRE) — Alico, Inc. (\u201cAlico\u201d, the \u201cCompany\u201d, \u201cwe\u201d, \u201cus\u201d or \u201cour\u201d) (Nasdaq: ALCO) today announced financial results for the first quarter ended December\u00a031, 2024.<\/p>\n

\n Management Comments<\/strong>\n <\/p>\n

John Kiernan, President and Chief Executive Officer of the Company, stated, \u201cDuring the first fiscal quarter, operational results reflected the ongoing challenges in our citrus division, with lower levels year-over-year of pounds solid being produced. Current season production trends, coupled with persistent impacts of citrus greening disease and environmental factors, indicate that our total harvest volume for fiscal 2025 will likely be lower than fiscal 2024. These continued production challenges reinforced our recent strategic decision to wind down Alico\u2019s citrus operations because they are not economically viable. Looking ahead to the remainder of fiscal 2025, we expect to complete our final citrus harvest while positioning the Company for its next chapter.\u201d<\/p>\n

Mr. Kiernan continued, \u201cAs previously announced in early January, we are executing our strategic transformation to become a diversified land company, balancing alternative agricultural operations with strategic land monetization opportunities. By exiting capital-intensive citrus production, we strengthen our financial position. We are also in the process of advancing several land sales currently in negotiations which are expected to generate approximately $20 million in proceeds this fiscal year. These anticipated proceeds and cash generated by the Valencia harvest, which will begin next week, are expected to fund operations through fiscal 2027. Alico also has an additional $73.5 million in unused credit facilities available if needed. This transformation enables us to pursue commercial and residential development opportunities while maintaining diversified farming operations across our portfolio, positioning us to deliver enhanced returns for shareholders.\u201d<\/p>\n

\n Results of Operations for the First Quarter 2025:<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n (in thousands, except for per share amounts and percentages)<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n (Unaudited)<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\n Three Months Ended December 31,<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\n 2024<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2023<\/strong>\n <\/td>\n\u00a0<\/td>\n\n % Change<\/strong>\n <\/td>\n<\/tr>\n
Revenue<\/td>\n$<\/td>\n16,894<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n13,985<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n20.8<\/td>\n%<\/td>\n<\/tr>\n
Net (loss) income attributable to Alico, Inc. common stockholders<\/td>\n$<\/td>\n(9,167<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n42,945<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(121.3<\/td>\n)%<\/td>\n<\/tr>\n
(Loss) earnings per diluted common share<\/td>\n$<\/td>\n(1.20<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n5.64<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(121.3<\/td>\n)%<\/td>\n<\/tr>\n
EBITDA\u00a0(1)<\/sup><\/td>\n$<\/td>\n(6,672<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n63,811<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(110.5<\/td>\n)%<\/td>\n<\/tr>\n
Adjusted EBITDA\u00a0(1)<\/sup><\/td>\n$<\/td>\n747<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(2,312<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n132.3<\/td>\n%<\/td>\n<\/tr>\n
Net cash used in operating activities<\/td>\n$<\/td>\n(7,597<\/td>\n)<\/td>\n\u00a0<\/td>\n$<\/td>\n(13,169<\/td>\n)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n42.3<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n December 31,
<\/strong>
\n 2024<\/strong>\n <\/td>\n		\u00a0<\/td>\n\n September 30,
2024<\/strong>\n <\/td>\n		\u00a0<\/td>\n\n $ Change<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\n (Unaudited)<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n Balance Sheet Items<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash and cash equivalents<\/td>\n$<\/td>\n4,388<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n3,150<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,238<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current portion of long-term debt<\/td>\n$<\/td>\n1,410<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n1,410<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n<\/tr>\n
Long-term debt, net<\/td>\n$<\/td>\n81,984<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n82,313<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(329<\/td>\n)<\/td>\n<\/tr>\n
Lines of credit<\/td>\n$<\/td>\n21,494<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n8,394<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n13,100<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Alico stockholders\u2019 equity<\/td>\n$<\/td>\n241,789<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n251,159<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n(9,370<\/td>\n)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Current ratio<\/td>\n\u00a0<\/td>\n4.84 to 1<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n3.81 to 1<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Debt to total assets ratio<\/td>\n\u00a0<\/td>\n0.26 to 1<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.23 to 1<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net Debt\u00a0(1)<\/sup><\/td>\n$<\/td>\n100,500<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n88,967<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
(1) \u201cEBITDA,\u201d \u201cAdjusted EBITDA\u201d and \u201cNet Debt\u201d are non-GAAP financial measures. See \u201cNon-GAAP Financial Measures\u201d 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.<\/td>\n<\/tr>\n
\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n<\/tr>\n<\/table>\n

For the three months ended December\u00a031, 2024 and 2023, the Company reported a net (loss) income attributable to Alico common stockholders of $(9.2) million and $42.9 million, respectively. The decrease in our net income attributable to Alico common stockholders for the three months ended December\u00a031, 2024 was principally the result of there being no land sales in the current quarter, as compared to the three months ended December\u00a031, 2023, in which we recognized a gain of $77.0 million, principally as a result of the sale of 17,229 acres of the Alico Ranch to the State of Florida for $77.6 million in gross proceeds. This was partially offset by a tax benefit of $(2.2) million for the three months ended December\u00a031, 2024, as compared to a $15.6 million tax provision for the three months ended December\u00a031, 2023. For the three months ended December\u00a031, 2024, the Company had a (loss) earnings of $(1.20) per diluted common share, compared to earnings of $5.64 per diluted common share for the three months ended December\u00a031, 2023.<\/p>\n

For the three months ended December\u00a031, 2024 and 2023, the Company had EBITDA of $(6.7) million and $63.8 million, respectively. Adjusted EBITDA for the three months ended December\u00a031, 2024 and 2023 was $0.7 million and $(2.3) million, respectively.<\/p>\n

These quarterly financial results also reflect the seasonal nature of the Company\u2019s business. The majority of the Company\u2019s citrus crop is typically harvested in the second and third quarters of the fiscal year; consequently, most of the Company\u2019s gross profit and cash flows from operating activities has been recognized in those quarters in the past. However, due to the timing of the previous year harvest, more of the citrus crop was harvested in the first and second quarters of the previous fiscal year. Furthermore, the Company\u2019s working capital requirements are typically greater in the first and fourth quarters of the fiscal year; however, as the harvest cycles have moved, our working capital requirements have been greater in the third and fourth quarters of the fiscal year.<\/p>\n

\n Business Segment Results<\/strong>\n <\/p>\n

\n Alico Citrus <\/strong>\n <\/p>\n

Citrus production for the three months ended December\u00a031, 2024 and 2023 is summarized in the following table.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n (in thousands, except per box and per pound solids data)<\/em>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\n Three Months Ended
<\/strong>
\n December 31,<\/strong>\n <\/td>\n		\u00a0<\/td>\n\n Change<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\n 2024<\/strong>\n <\/td>\n\u00a0<\/td>\n\n 2023<\/strong>\n <\/td>\n\u00a0<\/td>\n\n Unit<\/strong>\n <\/td>\n\u00a0<\/td>\n\n %<\/strong>\n <\/td>\n<\/tr>\n
\n Boxes Harvested:<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Early and Mid-Season<\/td>\n\u00a0<\/td>\n906<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,047<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(141<\/td>\n)<\/td>\n\u00a0<\/td>\n(13.5<\/td>\n)%<\/td>\n<\/tr>\n
Total Processed<\/td>\n\u00a0<\/td>\n906<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,047<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(141<\/td>\n)<\/td>\n\u00a0<\/td>\n(13.5<\/td>\n)%<\/td>\n<\/tr>\n
Fresh Fruit<\/td>\n\u00a0<\/td>\n37<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n31<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n19.4<\/td>\n\u00a0%<\/td>\n<\/tr>\n
Total<\/td>\n\u00a0<\/td>\n943<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,078<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(135<\/td>\n)<\/td>\n\u00a0<\/td>\n(12.5<\/td>\n)%<\/td>\n<\/tr>\n
\n Pound Solids Produced:<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Early and Mid-Season<\/td>\n\u00a0<\/td>\n4,047<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,666<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(619<\/td>\n)<\/td>\n\u00a0<\/td>\n(13.3<\/td>\n)%<\/td>\n<\/tr>\n
Total<\/td>\n\u00a0<\/td>\n4,047<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,666<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n(619<\/td>\n)<\/td>\n\u00a0<\/td>\n(13.3<\/td>\n)%<\/td>\n<\/tr>\n
\n Pound Solids per Box:<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Early and Mid-Season<\/td>\n\u00a0<\/td>\n4.47<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4.46<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.01<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0.2<\/td>\n\u00a0%<\/td>\n<\/tr>\n
\n Price per Pound Solids:<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Early and Mid-Season<\/td>\n$<\/td>\n3.69<\/td>\n\u00a0<\/td>\n$<\/td>\n2.66<\/td>\n\u00a0<\/td>\n$<\/td>\n1.03<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n38.7<\/td>\n\u00a0%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

For the three months ended December\u00a031, 2024, Alico Citrus harvested approximately 4.0 million pound solids of fruit, compared to 4.7 million pound solids of fruit in the same period in the prior fiscal year. The decrease in pound solids harvested was driven by fruit drop caused by Hurricane Milton during the three months ended December\u00a031, 2024.<\/p>\n

Our average price per pound solids for the three months ended December\u00a031, 2024 increased $1.03, as compared to the same period of the prior year, as a result of more favorable pricing in one of our contracts with Tropicana.<\/p>\n

\n Land Management and Other Operations <\/strong>\n <\/p>\n

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.<\/p>\n

Land Management and Other Operations revenue for the three months ended December\u00a031, 2024 increased 44.5%, as compared to the same period in the prior year due to an increase in rock and sand royalty income and sod sales, partially offset by lower farm, grazing and hunting lease revenues due to the sale of the Alico Ranch.<\/p>\n

The 84.2% decrease in operating expenses from Land Management and Other Operations for the three months ended December\u00a031, 2024, as compared to the three months ended December\u00a031, 2023, was primarily due to lower property and real estate taxes as a result of the sale of the Alico Ranch.<\/p>\n

\n Other Corporate Financial Information<\/strong>\n <\/p>\n

General and administrative expense decreased $0.7 million for the three months ended December\u00a031, 2024, compared to the three months ended December\u00a031, 2023. The decrease was primarily due to lower employee costs (as a result of lower bonus accruals) and lower professional fees.<\/p>\n

Other (Expense) Income, net for the three months ended December\u00a031, 2024 was a loss of $0.6 million as compared to income of $75.5 million during the three months ended December\u00a031, 2023, principally as a result of there being no land sales in the three months ended December\u00a031, 2024, as compared to gains of $77.0 million during the quarter ended December\u00a031, 2023, driven by the sale of the Alico Ranch to the State of Florida.<\/p>\n

\n Dividend<\/strong>\n <\/p>\n

On December 13, 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 27, 2024.<\/p>\n

\n Balance Sheet and Liquidity <\/strong>\n <\/p>\n

The Company continues to demonstrate financial strength within its balance sheet, as highlighted below:<\/p>\n