Exhibit 99.1

 

img49491758_0.jpg 

 

 

Alico, Inc. Announces Financial Results for the Second Quarter and Six Months Ended March 31, 2023

 

Fort Myers, FL, May 4, 2023 - 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.

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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

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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.

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“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

4


 

“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

 

 

5


 

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

 

 

6


 

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

 

 

 

7


 

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

 

 

8


 

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