Alico, Inc. (“Alico” or the “Company”) (Nasdaq: ALCO) today
announces financial results for the second quarter of fiscal year
2023 and the six months ended March 31, 2023, the highlights of
which are as follows:
- 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.
Alico (NASDAQ:ALCO)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Alico (NASDAQ:ALCO)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024