alco-10q_20210630.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	For the Quarterly Period Ended June 30, 2021

	or

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


For the transition period
	from____________________	to_________________________

Commission File Number: 0-261

ALICO, INC.

(Exact name of registrant as specified in its charter)

Florida			59-0906081
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
10070 Daniels Interstate Court
10070 Daniels Interstate Court
Suite 100	Fort Myers	FL	33913
(Address of principal executive offices)			(Zip Code)

(239)	226-2000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	ALCO	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated filer	☑	Smaller Reporting Company	☑
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were 7,526,004 shares of common stock outstanding at August 3, 2021.

ALICO, INC.

FORM 10-Q

For the three and nine months ended June 30, 2021 and 2020

Table of Contents

Part I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures About Market Risk	35
Item 4. Controls and Procedures	35
Part II - OTHER INFORMATION	36
Item 1. Legal Proceedings	36
Item 1A. Risk Factors	36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3. Defaults Upon Senior Securities	36
Item 4. Mine Safety Disclosure	36
Item 5. Other Information	36
Item 6. Exhibits	37
Signatures	38

PART I

Item 1. Condensed Consolidated Financial Statements

Index to Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets as of June 30, 2021 (Unaudited) and September 30, 2020	1
Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2021 and 2020 (Unaudited)	2
Condensed Consolidated Statements of Changes in Equity for the three and nine months ended June 30, 2021 and 2020 (Unaudited)	3
Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2021 and 2020 (Unaudited)	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6

ALICO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	June 30,			September 30,
	2021			2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	31,410		$	3,163
Accounts receivable, net		6,484			4,347
Inventories		31,564			40,855
Income tax receivable	—				781
Assets held for sale	944				1,366
Prepaid expenses and other current assets		1,516			1,387
Total current assets		71,918			51,899

Restricted cash		—			16,524
Property and equipment, net		370,138			350,061
Goodwill		2,246			2,246
Other non-current assets		2,765			3,207
Total assets	$	447,067		$	423,937

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,998		$	3,533
Accrued liabilities		8,558			7,095
Long-term debt, current portion		8,355			9,145
Income taxes payable		7,081			—
Other current liabilities		885			1,385
Total current liabilities		32,877			21,158

Long-term debt:
Principal amount, net of current portion		123,080			139,106
Less: deferred financing costs, net		(1,027	)		(1,151	)
Long-term debt less current portion and deferred financing costs, net		122,053			137,955
Lines of credit		—			2,942
Deferred income tax liabilities, net		39,728			39,728
Other liabilities		312			372
Total liabilities		194,970			202,155
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 7,520,938 and 7,492,524 shares outstanding at June 30, 2021 and September 30, 2020, respectively		8,416			8,416
Additional paid in capital		19,862			19,685
Treasury stock, at cost, 895,207 and 923,621 shares held at June 30, 2021 and September 30, 2020, respectively		(30,004	)		(30,779	)
Retained earnings		248,386			219,019
Total Alico stockholders' equity		246,660			216,341
Noncontrolling interest		5,437			5,441
Total stockholders' equity		252,097			221,782
Total liabilities and stockholders' equity	$	447,067		$	423,937

See accompanying notes to the condensed consolidated financial statements.

ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share amounts)

	Three Months Ended June 30,						Nine Months Ended June 30,
	2021			2020			2021			2020
Operating revenues:
Alico Citrus	$	34,262		$	25,360		$	102,456		$	85,336
Land Management and Other Operations		626			762			2,108			2,306
Total operating revenues		34,888			26,122			104,564			87,642
Operating expenses:
Alico Citrus		26,156			19,508			79,821			67,866
Land Management and Other Operations		222			394			610			1,325
Total operating expenses		26,378			19,902			80,431			69,191
Gross profit		8,510			6,220			24,133			18,451
General and administrative expenses		1,911			2,556			7,092			8,269
Income from operations		6,599			3,664			17,041			10,182
Other income (expense), net:
Interest expense		(907	)		(1,603	)		(3,185	)		(4,599	)
Gain on sale of real estate, property and equipment and assets held for sale		30,288			154			33,635			3,017
Other income (expense), net		6			44			18			(20	)
Total other income (expense), net		29,387			(1,405	)		30,468			(1,602	)
Income before income taxes		35,986			2,259			47,509			8,580
Income tax provision		8,853			171			11,682			2,028
Net income		27,133			2,088			35,827			6,552
Net (income) loss attributable to noncontrolling interests		(14	)		8			4			(94	)
Net income attributable to Alico, Inc. common stockholders	$	27,119		$	2,096		$	35,831		$	6,458
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic	$	3.61		$	0.28		$	4.77		$	0.86
Diluted	$	3.61		$	0.28		$	4.77		$	0.86
Weighted-average number of common shares outstanding:
Basic		7,521			7,486			7,512			7,481
Diluted		7,521			7,493			7,512			7,493

Cash dividends declared per common share	$	0.50		$	0.09		$	0.86		$	0.27

See accompanying notes to the condensed consolidated financial statements.

ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(in thousands)

For the Three Months Ended June 30, 2021

					Additional								Total			Non-
	Common stock				Paid In		Treasury			Retained			Alico, Inc.			controlling		Total
	Shares		Amount		Capital		Stock			Earnings			Equity			Interest		Equity
Balance at March 31, 2021		8,416	$	8,416	$	19,759	$	(30,223	)	$	225,028		$	222,980		$	5,423	$	228,403
Net income		—		—		—		—			27,119			27,119			14		27,133
Dividends ($0.50/share)		—		—		—		—			(3,761	)		(3,761	)		—		(3,761	)
Stock-based compensation:
Directors		—		—		3		219			—			222			—		222
Executives and Managers		—		—		100		—			—			100			—		100
Balance at June 30, 2021		8,416	$	8,416	$	19,862	$	(30,004	)	$	248,386		$	246,660		$	5,437	$	252,097

For the Nine Months Ended June 30, 2021

					Additional								Total			Non-
	Common stock				Paid In		Treasury			Retained			Alico, Inc.			controlling			Total
	Shares		Amount		Capital		Stock			Earnings			Equity			Interest			Equity
Balance at September 30, 2020		8,416	$	8,416	$	19,685	$	(30,779	)	$	219,019		$	216,341		$	5,441		$	221,782
Net income (loss)		—		—		—		—			35,831			35,831			(4	)		35,827
Dividends ($0.86/share)		—		—		—		—			(6,464	)		(6,464	)		—			(6,464	)
Stock-based compensation:
Directors		—		—		47		619			—			666			—			666
Executives and Managers		—		—	130			156			—			286			—			286
Balance at June 30, 2021		8,416	$	8,416	$	19,862	$	(30,004	)	$	248,386		$	246,660		$	5,437		$	252,097

See accompanying notes to the condensed consolidated financial statements.

ALICO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(in thousands)

For the Three Months Ended June 30, 2020

					Additional								Total			Non-
	Common stock				Paid In		Treasury			Retained			Alico, Inc.			controlling			Total
	Shares		Amount		Capital		Stock			Earnings			Equity			Interest			Equity
Balance at March 31, 2020		8,416	$	8,416	$	20,174	$	(31,784	)	$	201,065		$	197,871		$	5,197		$	203,068
Net income (loss)		—		—		—		—			2,096			2,096			(8	)		2,088
Dividends ($0.09/share)		—		—		—		—			(673	)		(673	)		—			(673	)
Stock-based compensation: