Alico Reports First Quarter Earnings
LABELLE, Fla., Feb. 15, 2008 (PRIME NEWSWIRE) -- Alico, Inc. (Nasdaq:ALCO), a land management company, announced net earnings for the first quarter of fiscal year 2008 of $2.8 million, or $0.38 per share, compared with net earnings of $2.6 million, or $0.35 per share, during the three months ended December 31, 2006.
Operating revenues during the first quarter of fiscal year 2008 totaled $23.6 million, compared with $26.5 million for the three months ended December 31, 2006.
John R. Alexander, Chairman and Chief Executive Officer, noted, "The decrease in operating revenues for the three months ended December 31, 2007 was due to decreased revenues from operations, primarily citrus, as a result of lower prices in the current fiscal year."
Operating revenues Gross Profits
Three months ended Three months ended
December 31, December 31,
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues
Agriculture:
Bowen Brothers Fruit $ 7,815 $ 7,633 $ 103 $ 209
Citrus groves 4,665 6,172 820 2,464
Sugarcane 3,221 3,738 (30) (406)
Cattle 486 3,653 (372) 618
Alico Plant World 902 749 69 258
Vegetables 1,724 1,117 324 (99)
Sod 196 349 (120) 147
--------- --------- --------- ---------
Agriculture operations 19,009 23,411 794 3,191
Real estate operations 3,869 2,447 2,978 2,207
Land leasing and rentals 536 259 459 187
Mining royalties 140 411 109 370
General and
administrative -- -- (3,001) (3,167)
--------- --------- --------- ---------
Total Operations $ 23,554 $ 26,528 $ 1,339 $ 2,788
Profit on bulk real
estate sales 817 1,870 817 1,292
Interest and
investments, net 4,333 1,626 1,867 365
Other 265 74 265 74
--------- --------- --------- ---------
Total $ 28,969 $ 30,098 4,288 4,519
Provision for income
taxes 1,498 1,939
--------- ---------
Net income $ 2,790 $ 2,580
========= =========
Earnings per share $ 0.38 $ 0.35
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Addressing the divisional results for the quarter, Mr. Alexander noted that:
-- Citrus prices have declined an estimated 20% during fiscal year
2008 from their prior year levels. For this reason, the Company
expects profits from its citrus groves to be lower in fiscal year
2008 when compared with fiscal year 2007. Prices have declined in
the Florida citrus industry due to an increasing supply of citrus
as groves have recovered from the damages brought on by the
hurricanes of 2004 and 2005.
-- Fewer calves were sold during the three months ended December 31,
2007 compared with the three months ended December 31, 2006. As a
result, cattle revenues decreased from their prior year levels.
Additionally, due to a decline in calving caused by the reduced
size of the cattle herd and herd stress brought about by a severe
drought, the cost per calf has increased and as a result unit
margins have suffered. Consequently, cattle operations are not
expected to perform as well in fiscal year 2008 as they did in
fiscal year 2007.
-- The Company restructured a contract in October 2007, with the
terms to be retroactive to the original closing in July 2005. The
Company recognized approximately $0.8 million of non-operating
gain and interest income of $1.5 million in connection with the
restructure.
On September 28, 2007, the Board of Directors of the Company approved a change in the Company's fiscal year end from August 31 to September 30. The fiscal year change is effective beginning with the Company's 2008 fiscal year. The Company's 2008 fiscal year began on October 1, 2007 and will end September 30, 2008, resulting in a one month transition period that began September 1, 2007 and ended September 30, 2007.
About Alico, Inc.
Alico, Inc., a land management company operating in Central and Southwest Florida, owns approximately 135,500 acres of land located in Collier, Glades, Hendry, Lee and Polk counties. Alico is involved in various agricultural operations and real estate activities. Alico's mission is to grow its asset values through its agricultural and real estate activities to produce superior long-term returns for its shareholders.
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include expectations regarding the future performance of the Company's operating divisions. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
Released February 15, 2008