alco-10q_20220331.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 March 31, 2022

	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 200	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 7,564,786 shares of common stock outstanding at May 6, 2022.

ALICO, INC.

FORM 10-Q

For the three and six months ended March 31, 2022 and 2021

Table of Contents

Part I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements	1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosures About Market Risk	33
Item 4. Controls and Procedures	33
Part II - OTHER INFORMATION	34
Item 1. Legal Proceedings	34
Item 1A. Risk Factors	34
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3. Defaults Upon Senior Securities	34
Item 4. Mine Safety Disclosure	34
Item 5. Other Information	34
Item 6. Exhibits	35
Signatures	36

PART I

Item 1. Condensed Consolidated Financial Statements

Index to Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets as of March 31, 2022 (Unaudited) and September 30, 2021	1
Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2022 and 2021 (Unaudited)	2
Condensed Consolidated Statements of Changes in Equity for the three and six months ended March 31, 2022 and 2021 (Unaudited)	3
Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2022 and 2021 (Unaudited)	4
Notes to Condensed Consolidated Financial Statements (Unaudited)	5

ALICO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

	March 31,			September 30,
	2022			2021
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	23,516		$	886
Accounts receivable, net		12,527			6,105
Inventories		33,183			43,377
Income tax receivable	—				3,233
Assets held for sale		129			160
Prepaid expenses and other current assets		1,227			1,152
Total current assets		70,582			54,913

Restricted cash		2,660			—
Property and equipment, net		373,863			373,231
Goodwill		2,246			2,246
Other non-current assets		3,561			2,827
Total assets	$	452,912		$	433,217

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,377		$	7,274
Accrued liabilities		7,986			9,872
Long-term debt, current portion		4,285			4,285
Income tax payable		4,072			—
Other current liabilities		811			875
Total current liabilities		24,531			22,306

Long-term debt:
Principal amount, net of current portion		119,866			122,009
Less: deferred financing costs, net		(910	)		(986	)
Long-term debt less current portion and deferred financing costs, net		118,956			121,023
Deferred income tax liabilities, net		37,231			41,977
Other liabilities		638			306
Total liabilities		181,356			185,612
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 7,552,669 and 7,526,004 shares outstanding at March 31, 2022 and September 30, 2021, respectively		8,416			8,416
Additional paid in capital		19,963			19,989
Treasury stock, at cost, 863,476 and 890,141 shares held at March 31, 2022 and September 30, 2021, respectively		(29,027	)		(29,853	)
Retained earnings		266,938			243,651
Total Alico stockholders' equity		266,290			242,203
Noncontrolling interest		5,266			5,402
Total stockholders' equity		271,556			247,605
Total liabilities and stockholders' equity	$	452,912		$	433,217

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 March 31,						Six Months Ended March 31,
	2022			2021			2022			2021
Operating revenues:
Alico Citrus	$	49,032		$	55,268		$	63,780		$	68,194
Land Management and Other Operations		609			676			1,198			1,482
Total operating revenues		49,641			55,944			64,978			69,676
Operating expenses:
Alico Citrus		45,490			45,518			58,876			53,665
Land Management and Other Operations	152			200			292			388
Total operating expenses		45,642			45,718			59,168			54,053
Gross profit		3,999			10,226			5,810			15,623
General and administrative expenses		2,538			2,653			5,122			5,181
Income from operations		1,461			7,573			688			10,442
Other income (expense), net:
Interest expense		(870	)		(1,089	)		(1,771	)		(2,278	)
Gain (loss) on sale of real estate, property and equipment and assets held for sale		26,604			(17	)		35,049			3,347
Other income		1			2			10			12
Total other income (expense), net		25,735			(1,104	)		33,288			1,081
Income before income taxes		27,196			6,469			33,976			11,523
Income tax provision		6,579			1,579			3,279			2,829
Net income		20,617			4,890			30,697			8,694
Net loss (income) attributable to noncontrolling interests		85			(23	)		136			18
Net income attributable to Alico, Inc. common stockholders	$	20,702		$	4,867		$	30,833		$	8,712
Per share information attributable to Alico, Inc. common stockholders:
Earnings per common share:
Basic	$	2.74		$	0.65		$	4.09		$	1.16
Diluted	$	2.74		$	0.65		$	4.08		$	1.16
Weighted-average number of common shares outstanding:
Basic		7,552			7,513			7,543			7,508
Diluted		7,556			7,513			7,548			7,508

Cash dividends declared per common share	$	0.50		$	0.18		$	1.00		$	0.36

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 March 31, 2022

					Additional									Total			Non-
	Common stock				Paid In			Treasury			Retained			Alico, Inc.			controlling			Total
	Shares		Amount		Capital			Stock			Earnings			Equity			Interest			Equity
Balance at December 31, 2021		8,416	$	8,416	$	20,080		$	(29,399	)	$	250,012		$	249,109		$	5,351		$	254,460
Net income (loss)		—		—		—			—			20,702			20,702			(85	)		20,617
Dividends ($0.50/share)		—		—		—			—			(3,776	)		(3,776	)		—			(3,776	)
Stock-based compensation:
Directors		—		—		27			142			—			169			—			169
Executives and Managers		—		—		59			—			—			59			—			59
Employees		—		—		(203	)		230			—			27			—			27
Balance at March 31, 2022		8,416	$	8,416	$	19,963		$	(29,027	)	$	266,938		$	266,290		$	5,266		$	271,556

For the Six Months Ended March 31, 2022

					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, 2021		8,416	$	8,416	$	19,989		$	(29,853	)	$	243,651		$	242,203		$	5,402		$	247,605
Net income (loss)		—		—		—			—			30,833			30,833			(136	)		30,697
Dividends ($1.00/share)		—		—		—			—			(7,546	)		(7,546	)		—			(7,546	)
Exercise of stock options		—		—		15			155			—			170			—			170
Stock-based compensation:
Directors		—		—		50			298			—			348			—			348
Executives and Managers		—		—		112			143			—			255			—			255
Employees		—		—		(203	)		230			—			27			—			27
Balance at March 31, 2022		8,416	$	8,416	$	19,963		$	(29,027	)	$	266,938		$	266,290		$	5,266		$	271,556

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 March 31, 2021

					Additional							Total		Non-
	Common stock				Paid In		Treasury			Retained		Alico, Inc.		controlling		Total
	Shares		Amount		Capital		Stock			Earnings		Equity		Interest		Equity
Balance at December 31, 2020		8,416	$	8,416	$	19,634	$	(30,421	)	$	221,513	$	219,142	$	5,400	$	224,542
Net income		—		—		—		—			4,867